On August 1, 2008, Tyler Corporation Issues $3,000,000 of 10-

question 44

Multiple Choice

On August 1, 2008, Tyler Corporation issues $3,000,000 of 10- year bonds dated August 1, 2008, at 101 when the market rate of interest is 8%. Tyler Corporation uses the effective- interest method of amortization and interest is paid each January 31, and July 31. No accrual has been made. The entry to record the first semiannual interest payment on January 31, 2009, will include a:

• A)debit to Interest Expense for $121,200.
• B)credit to Interest Payable for $120,000.
• C)debit to Premium on Bonds Payable for $300,000.
• D)credit to Premium on Bonds Payable for $240,000.

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Definitions:

Renal Column

Cortical tissue extensions between the renal pyramids in the kidney, involved in urine production.

Transitional Epithelium

A type of tissue consisting of multiple layers of epithelial cells that can contract and expand, found in areas such as the bladder.

Urinary Bladder

The urinary bladder is a hollow organ that stores urine produced by the kidneys before it is excreted from the body.

Elastic Cartilage

A type of cartilage that is more flexible due to the presence of elastic fibers, found in the ear and epiglottis.