Crosson Company Uses the Straight-Line Method of Amortization and Had

question 23

Multiple Choice

Crosson Company uses the straight-line method of amortization and had a ten-year, 12 percent, $1,000,000 bond issue outstanding that had been sold at a $12,000 discount in 2015. The bonds pay interest on June 30 and December 31, and the company's fiscal year end is December 31. The journal entry on June 30, 2018, will include:

• A)a $6,000 credit to Cash.
• B)a $1,200 credit to Premium on Bonds Payable.
• C)a $58,800 debit to Interest Expense
• D)a $600 credit to Discount on Bonds Payable.

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Definitions:

Hot Drinks

Beverages that are typically served warm, such as coffee, tea, hot chocolate, and certain herbal infusions.

Temperature

A physical quantity representing the hotness or coldness of a body or environment, typically measured in degrees Celsius, Fahrenheit, or Kelvin.

Increased

A situation or condition in which there is a rise in quantity, size, number, or some other measure of a concept or object.

Independent Variable

The determining variable in a causal relationship.