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Zolol [24]
2 years ago
6

Which answer is correct

Business
1 answer:
iris [78.8K]2 years ago
3 0
The one you selected on the screen in the pic I believe
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On January 1, a company issued and sold a $399,000, 9%, 10-year bond payable, and received proceeds of $394,000. Interest is pay
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Answer:

Cash Interest payable on Bond = $399,000*4.5% = $17,955

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Interest expense = $17,955+$250 = $18,205

Date   Journal Entry                                  Debit      Credit            

           Interest Expense                          $18,205

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                 Cash                                                          $17,955

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