Asked by
Krystal Monica
on Nov 13, 2024
Verified
The journal entry a company records for the payment of interest, interest expense, and amortization of bond premium is
A) debit Interest Expense, credit Cash and Premium on Bonds Payable
B) debit Interest Expense, credit Cash
C) debit Interest Expense and Premium on Bonds Payable, credit Cash
D) debit Interest Expense, credit Interest Payable and Premium on Bonds Payable
Premium on Bonds Payable
A situation where bonds are sold above their face value, leading to a credit balance in the premium on bonds payable account.
Journal Entry
A record in accounting that documents a business transaction, indicating the accounts and amounts debited and credited.
- Develop the skills to properly account for transactions involving the issuance of bonds, payment of interest, and the gradual write-off of bond discounts or premiums.
Verified Answer
JA
Learning Objectives
- Develop the skills to properly account for transactions involving the issuance of bonds, payment of interest, and the gradual write-off of bond discounts or premiums.
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