On January 1, 2014, Partridge Company Issued $50,000 of 6-Year

question 11

Essay

On January 1, 2014, Partridge Company issued $50,000 of 6-year bonds with a stated rate of 3%. The market rate at time of issue was 4%, so the bonds were discounted and sold for $47,331. Partridge uses the effective-interest rate 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? (Please round all amounts to the nearest whole dollar.)
A)

B)

C)

D)

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Definitions:

Transference

In psychoanalysis, the process by which patients transfer feelings they have about figures from their past onto their therapist.

Unconscious Emotions

Feelings that influence an individual's thoughts and actions without their conscious awareness.

Repression

In psychoanalytic theory, the selective, involuntary pushing of threatening or upsetting information into the unconscious.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety through gradual exposure.