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

question 91

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 2008. 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, 2011, will include:

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

---

Definitions:

Statistical Reasoning

The process of using statistical techniques and methods to analyze data and make conclusions based on data analysis.

Deliberate System

A cognitive process characterized by the slow, logical, and conscious evaluation of information, contrasting with automatic, quick, and unconscious processing.

Automatic System

Processes in the brain that occur without conscious effort, often quickly and based on learned routines.

Statistical Reasoning

The process of using statistical methods and principles to analyze, interpret, and draw conclusions from data.