1Method of Amortization and Interest Is Paid Each January 31

question 137

Multiple Choice

1.method of amortization and interest is paid each January 31, and July 31. Assuming no adjusting entries have been made to record interest expense, the entry to record the first semiannual interest payment on
January 31, 2012, will include a:

• A)debit to Premium on Bonds Payable for $30,000.
• B)debit to Interest Expense for $121,000.
• C)credit to Premium on Bonds Payable for $240,000.
• D)debit to Interest Expense for $120,000.

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Definitions:

Competitive Labor Market

A market in which there are many employers seeking to hire and many workers seeking employment, leading to competition among employers for employees and vice versa.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who lose their jobs and meet certain requirements.

Competitive Advantage

A unique attribute or ability that enables an organization to outperform its competitors.

Insurance Tax

A tax levied on insurance premiums that insurers are required to pay, often varying by state or country.