What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based
on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually?
JOURNAL
Page
25
DATE
DESCRIPTION
P.REF.
DEBIT
CREDIT
(1)
?
(2)
?
(1) Interest Expense debit $11,000, and (2) Cash credit $11,000
(1) Interest Expense debit $10,000 and (2) Cash credit $10,000
(1) Cash debit $20,000 and (2) Interest Expense credit $20,000
(1) Cash debit $22,000, and (2) Interest Expense credit $22,000
Transcribed Image Text:What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000
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