On January 1, 2013, Diab Services Issued $140,000 of 4-Year

question 79

Essay

On January 1, 2013, Diab Services issued $140,000 of 4-year bonds with a stated rate of 9%. The market rate at time of issue was 8%, so the bonds were issued with a premium and sold for $144,758. Diab uses the effective-interest method to amortize bond premium. 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?
A)

B)

C)

D)

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Definitions:

Career Potential

The capability or possibility an individual has to progress and succeed in their career, often explored in terms of advancement opportunities and skill development.

Executive Positions

High-level managerial roles within a company responsible for making major decisions and guiding the organization's direction.

Subcultures

Smaller cultures that develop within a larger organizational culture and are based on differences in training, occupation, or departmental goals.

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Acceptance that something exists or is true, especially without proof, or the held opinions or convictions of an individual or group.