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Alborosie
3 years ago
8

A company issued 7%, 15-year bonds with a par value of $480,000 that pay interest semi-annually. The current market rate is 7%.

The journal entry to record each semiannual interest payment is:
A.) Debit Bond Interest Expense $16,800; credit Cash $16,800.

B.) Debit Bond Interest Expense $33,600; credit Cash $33,600.

C.) No entry is needed, since no interest is paid until the bond is due.

D.) Debit Bond Interest Expense $430,000; credit Cash $430,000.

E.) Debit Bond Interest Expense $32,000; credit Cash $32,000.
Business
1 answer:
saul85 [17]3 years ago
7 0
Im not 100% sure but i think the answer is B
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