How do I Prepare a journal entry for a bond to record the installment payment and any interest. with an effective interest rate for the bond is 14% per year? Is this the correct way below? Credit  Cash   Debit Mortgage payable   Debit Interest Payable   Credit  Cash

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
Problem 7R
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 How do I Prepare a journal entry for a bond to record the installment payment and any interest. with an effective interest rate for the bond is 14% per year? Is this the correct way below?

Credit  Cash  
Debit Mortgage payable  
Debit Interest Payable  
Credit  Cash  

 

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