The Journal Entry to Record a Semiannual Interest Payment on a Bond

question 110

Multiple Choice

The journal entry to record a semiannual interest payment on a bond payable:

• A)debits interest expense and credits cash.
• B)debits interest expense and credits bonds payable.
• C)decreases both assets and stockholders' equity.
• D)does both A and C

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Definitions:

Goodness Of Fit Model

A concept in psychology that describes how well an individual's temperament matches the expectations and demands of their environment, impacting their development.

Merchant

An individual or business that sells goods or services in the market.

Article 2

Refers to a portion of the Uniform Commercial Code that deals with the sale of goods.

Provisions

Specific clauses or articles in a contract or legal statute detailing certain conditions, requirements, or stipulations.