The Journal Entry a Company Records for the Payment of Interest

question 87

Multiple Choice

The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is

• A) debit Interest Expense, credit Cash and Discount on Bonds Payable
• B) debit Interest Expense, credit Cash
• C) debit Interest Expense and Discount on Bonds Payable, credit Cash
• D) debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

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Definitions:

Chlorine

A chemical element with symbol Cl, known for its strong disinfectant properties, widely used in water purification, bleaches, and manufacturing of numerous products.

Limiting Reagent

The reactant in a chemical reaction that is completely consumed first, limiting the amount of product formed.

Hydrogen

A chemical element with the symbol H and atomic number 1, it is the lightest and most abundant chemical substance in the universe.

Oxygen

A chemical element (symbol O) with atomic number 8, essential for most forms of life and crucial in combustion processes.