On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using the effective interest method of amortization is: Multiple Choice Debit Interest Expense $12,487.08; debit Premium on Bonds Payable $1,012.92; credit Cash $13,500.00. Debit Interest Payable $13,500; credit Cash $13,500.00. Debit Bond Interest Expense $12,487.08; debit Discount on Bonds Payable $1,012.92; credit Cash $13,500.00. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Your group has a presentation to the class in two weeks. moe believes that the presentation should be similar to a presentation he gave in his marketing class last semester.
Answers (1)
Why is it often difficult for a firm to match its strategy to hr deliverables?
Answers (1)
Social Security is considered to be mandatory spending by the government. Question 14 options: True False
Answers (1)
Ethical principles that practicing professionals such as engineers are obligated to follow. These principles are also applicable to society in general. 1. True2. False
Answers (1)
The disparity between book income and taxable income is attributable to a temporary difference, which will reverse in 2017.
Answers (1)
New Questions in Business
Discount-Mart issues $10 million in bonds on January 1, 2012. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds.
Answers (1)
Available"" (as in ""measurable and available"") means 1. Available to finance expenditures of the current period 2. Subject to accrual 3. Collectible 4. Available for appropriation
Answers (1)
Which of the following is reported as a financing activity in the statement of cash flows? Multiple Choice The payment of interest on bonds payable. The receipt of dividend revenue. The acquisition of stock for the purpose of retiring it.
Answers (1)
Which one of the following is true concerning manufacturing and merchandising companies' inventories? Entry field with incorrect answer The balance sheet for both types of companies reports one category for inventories.
Answers (1)
What is the law of demand and supply
Answers (1)