If Bonds Have Been Issued at a Discount and the Effective-Interest

question 80

Multiple Choice

If bonds have been issued at a discount and the effective-interest method is used,the journal entry for payment of bond interest would include:

• A)a debit to cash.
• B)a debit to discount on bonds payable.
• C)a credit to interest expense.
• D)a debit to interest expense.

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Definitions:

On Record

Information or statements that are documented and can be verified or referenced.

Emotional Needs

The aspects of psychological well-being that involve emotional support, love, belonging, and self-esteem.

Major Point

The most important or central idea, argument, or piece of information in a discussion or piece of writing.

Immediate Response

The prompt reply or reaction to a situation or inquiry without significant delay.