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:

Histamine

A compound released by cells in response to injury and in allergic and inflammatory reactions, causing contraction of smooth muscle and dilation of capillaries.

Prostaglandins

A group of lipid compounds that are derived enzymatically from fatty acids and have important functions in the body, including in inflammation and as hormone-like messengers.

Neutrophils

A type of white blood cell and the most abundant type of granulocyte, playing a vital role in defending the body against infections by ingesting pathogens.

Macrophages

Large white blood cells that ingest and destroy pathogens, dead cells, and cellular debris.