When Interest Payments Are Made on a Bond Issued at Face

question 35

Multiple Choice

When interest payments are made on a bond issued at face value,the journal entry is:

• A)debit Bond Interest Expense,credit Cash.
• B)debit Bonds Payable,credit Cash.
• C)debit Cash,credit Bonds Payable.
• D)debit Cash,credit Bond Interest Expense.

---

Definitions:

Revenues

The cumulative revenue produced from selling goods or services that are fundamental to a company's main activities.

Cash Dividend

Profits distributed by a company to its shareholders, usually as a form of payment.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Dividends Paid

The total amount of dividend payments made to shareholders during a specific period, often reported quarterly or annually.