A Bond Was Issued at a Premium

question 168

Multiple Choice

A bond was issued at a premium. The journal entry to record the semiannual interest payment would include:

• A)a debit to interest expense, a debit to premium on bonds payable and a credit to cash.
• B)a debit to interest expense, a credit to premium on bonds payable and a credit to cash.
• C)a debit to interest expense, a debit to cash and a credit to premium on bonds payable.
• D)a debit to premium on bonds payable and a credit to cash.