On January 1, 2015, Finch Company Issued $72,000 of 5-Year

question 135

Multiple Choice

On January 1, 2015, Finch Company issued $72,000 of 5-year bonds with a stated rate of 8%. The market rate at time of issue was 12%, so the bonds were discounted and sold for $61,401. Finch uses the effective-interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round all amounts to the nearest whole dollar.)

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Definitions:

Urethritis

Inflammation of the urethra, often caused by infection, leading to pain during urination.

Urinary Tract Infections

Urinary Tract Infections, or UTIs, are infections affecting any part of the urinary system, often caused by bacteria entering the urethra and bladder.

Cystitis

Inflammation of the bladder.

Kidney Dialysis

A medical treatment for removing waste and excess water from the blood, acting as an artificial replacement for lost kidney function.