The Journal Entry a Company Records for the Interest Payment

question 126

Multiple Choice

The journal entry a company records for the interest payment 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:

Formal Organization

The official, legitimate, and most visible part of the system.

Logical Thinking

A method of reasoning in a structured and systematic manner to arrive at valid conclusions based on factual premises.

Employee Bonding

The development of strong, positive relationships among coworkers that can enhance teamwork and morale within the workplace.

Industrial Mental Health

The field of study and practice concerned with the psychological well-being of individuals within the workplace and the prevention of work-related mental health issues.