The Amazing Widget Company Issues $515,000 of 12%,10-Year Debentures at 105

question 83

Multiple Choice

The Amazing Widget Company issues $515,000 of 12%,10-year debentures at 105 on 30 April 2017.The debentures pay interest on 30 April and 31 October.Assume that the company uses the straight-line method for amortisation.What is the journal entry to record the first interest payment on 31 October 2017? (Round to the nearest dollar. )

• A)credit to Premium on bonds payable for $1288.
• B)debit to Interest expense for $32,188.
• C)debit to Interest expense for $29,612.
• D)debit to Cash for $30,900.

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Definitions:

Social Skills

Abilities essential for effective interpersonal interactions, including communication, empathy, and conflict resolution.

Scaffolding

An educational technique involving the provision of supportive structures and guidance to facilitate learning, allowing the learner to perform tasks they would not be able to accomplish alone.

Parental Support

Assistance, encouragement, and care provided by parents to their children, crucial for healthy development and emotional well-being.

Cognitive Skills

Mental abilities that include reasoning, problem solving, memory, perception, and processing information to understand and interact with the world.