A 10-Year Bond That Pays Interest Annually Was Issued at a $5,000

question 219

Multiple Choice

A 10-year bond that pays interest annually was issued at a $5,000 premium.The entry to record the payment of interest using straight-line amortization will include a ________ to Premium on Bonds Payable for ________ each period.

• A)credit;$500
• B)debit;$500
• C)debit;a greater amount each period
• D)credit;a lower amount each period