Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with interest payable on June 30 and December 31. The fiscal year of the company is the calendar year. What is the entry to record the payment of interest on December 31 in the year the bonds were issued? 90,000 Ca. Interest Expense Cash Ob. Interest Payable Interest Expense Cash Oc. Interest Expense Cash Od. Cash Interest Expense 90,000 90,000 180,000 90,000 90,000 180,000 180,000 90,000

Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with interest payable on June 30 and December 31. The fiscal year of the company is the calendar year. What is the entry to record the payment of interest on December 31 in the year the bonds were issued? 90,000 Ca. Interest Expense Cash Ob. Interest Payable Interest Expense Cash Oc. Interest Expense Cash Od. Cash Interest Expense 90,000 90,000 180,000 90,000 90,000 180,000 180,000 90,000

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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