The Adjusting Entry to Record the Amortization of a Discount

question 111

Multiple Choice

The adjusting entry to record the amortization of a discount on bonds payable is

• A) debit Discount on Bonds Payable, credit Interest Expense
• B) debit Interest Expense, credit Discount on Bonds Payable
• C) debit Interest Expense, credit Cash
• D) debit Bonds Payable, credit Interest Expense

---

Definitions:

World War II

A global conflict that took place between 1939 and 1945, involving most of the world's nations.

Federal Government

The central government of a federation, possessing the power to manage matters impacting the whole nation.

Economic Role

The function that individuals, institutions, or items play in the economic system, influencing how resources are distributed and utilized.

Trust Fund

A legal entity established to hold assets on behalf of individuals or organizations, often used for wealth management or to set aside money for specific purposes.