The Payment of Semiannual Interest on 12%,$60,000 Bonds Issued at Par

question 21

Multiple Choice

The payment of semiannual interest on 12%,$60,000 bonds issued at par would be to:

• A)debit Bond Interest Expense $3,600;credit Cash $3,600.
• B)debit Bond Interest Expense $7,200;credit Cash $7,200.
• C)debit Cash $1,800;credit Bond Interest Expense $1,800.
• D)debit Bond Interest Expense $1,800;credit Cash $1,800.

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Definitions:

Joint Tenancy

A form of legal co-ownership of property where co-owners have an equal share and the right of survivorship, meaning that upon the death of one owner, their share automatically passes to the remaining co-owners.

Right-Of-Way Easement

A legal right granted to a person or entity to pass through another's land for a specified purpose.

Solar Easement

A legal agreement that ensures uninterrupted access to sunlight for solar energy systems, often through a property owner's rights to protect against obstructions that would shade their solar collectors.

Historic Preservation Easement

A legal agreement that protects a property's historical features by restricting certain changes, ensuring its preservation for future generations.