A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. Thejournal entry to record each semiannual interest payment is:Multiple Choice58:17Debit Bond Interest Expense S18,800; credit Cash $18,800.Debit Bond Interest Expense $37,600; credit Cash $37,600.Debit Bond Interest Payable $31,333; credit Cesh $31,333.Debit Bond Interest Expense $420,000; credit Cash $420,000.due.No entryneeded, since no interest is paid until the bond< Prev7 of 10Next >

Bonds: In finance, bonds are a sort of safety net utilized in shared assets and private…

A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $18,s00, credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond interest Payable $31,333; credit Cash $31,333. Debit Bond Interest Expense $420,000: credit Cash $420,000. No entry is needed, since no interest is paid until the bond is due.

A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $18,s00, credit Cash $18,800. Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond interest Payable $31,333; credit Cash $31,333. Debit Bond Interest Expense $420,000: credit Cash $420,000. No entry is needed, since no interest is paid until the bond is due.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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Similar questions

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