The Entry to Record the Amortization of a Premium on Bonds

question 26

Multiple Choice

The entry to record the amortization of a premium on bonds payable on an interest payment date would

• A) a debit to Premium on Bonds Payable and a credit to Interest Revenue
• B) a debit to Interest Expense and a credit to Premium on Bond Payable
• C) a debit to Interest Expense and Premium on Bonds Payable and a credit to Cash
• D) a debit to Bonds Payable and a credit to Interest Expense

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Definitions:

Chi

A concept originating from Chinese philosophy that signifies the vital life force or energy that flows through living beings.

Familiarity

The quality of being well known or easily recognized, often resulting from being encountered frequently or studied extensively.

Perceptual Selection

The process by which individuals filter and select environmental stimuli to pay attention to, based on various factors such as interests, background, and expectations.

Perceptual Selection

The process by which individuals filter and select information from their environment based on their preferences, beliefs, and past experiences.