A Company Issued $300,000 of 20-Year,8 Percent Bonds at 96 $\begin{array}{l}\text { Bond Interest Expense }&12,000 \\\text { Cash }&&12,000\end{array}$

question 99

Multiple Choice

A company issued $300,000 of 20-year,8 percent bonds at 96.If interest is paid semi-annually,the entry to record the amount of bond interest expense (assuming the straight-line method of amortization) on any interest date is

• A)
• \(\begin{array}{l}
• \text { Bond Interest Expense }&12,000 \\
• \text { Cash }&&12,000
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Bond Interest Expense } &24,300\\
• \text { Unamortized Bond Discount} &&300\\
• \text { Cash } &&24000
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Bond Interest Expense } &23,700\\
• \text { Cash } &&23,700\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Bond Interest Expense } &12,300\\
• \text {Unamortized Bond Discount } &&300\\
• \text { Cash } &&12000
• \end{array}\)

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