Accurate Numbers, Inc B) C) D) $\begin{array}{|l|r|r|}\hline \text { Interest expense } & 6,000 & \\\hline \text { Cash } & & 6,000 \\\hline\end{array}$

question 152

Multiple Choice

Accurate Numbers, Inc., issued $100,000 of 10 year, 12% bonds dated April 1, 20X1, for $102,360 on April 1, 20X1. The bonds pay interest on April 1 and October 1. Straight-line amortization is used by the company. What entry is needed at October 1 for the first interest payment?
a)
$\begin{array}{|l|r|r|}\hline \text { Interest expense } & 5,882 & \\\hline \text { Premium on bonds payable } & 118 & \\\hline \text { Cash } & & 6,000\\\hline\end{array}$

b)
$\begin{array}{|l|r|r|}\hline \text { Interest expense } & 6,118 & \\\hline \text { Discount on bonds payable } & 118 & \\\hline \text { Cash } & & 6,000 \\\hline\end{array}$

c)
$\begin{array}{|l|r|r|}\hline \text { Interest expense } & 6,000 & \\\hline \text { Premium on bonds payable } & 118 & \\\hline \text { Cash } & & 6,118\\\hline\end{array}$

d)
$\begin{array}{|l|r|r|}\hline \text { Interest expense } & 6,000 & \\\hline \text { Cash } & & 6,000 \\\hline\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Charge

An inherent property of particles that causes them to experience a force in the presence of an electromagnetic field.

Lewis Structure

A graphical representation illustrating the connections between atoms within a molecule, including any existing unpaired electrons.

Molecular Formula

A representation of the number and type of atoms in a molecule, but not the arrangement or bonds between them.

Lewis Structure

A Lewis structure is a diagrammatic method for representing the valence electrons of an atom, molecule, or ion, showing how electrons are arranged and bonds formed.