The Frozen Lake Company Issues $530,000 of 9%,10-Year Bonds at 105

question 44

Multiple Choice

The Frozen Lake Company issues $530,000 of 9%,10-year bonds at 105 on March 31,2017.The bond pays interest on March 31 and September 30.Assume that the company uses the straight-line method for amortization.The journal entry to record the first interest payment on September 30,2017 includes a ________.(Round your intermediate answers to the nearest dollar. )

• A)debit to Cash for $23,850
• B)debit to Interest Expense for $25,175
• C)debit to Interest Expense for $22,525
• D)credit to Premium on Bonds Payable for $1,325

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