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:

Paraphrasing

Restating someone else’s ideas or thoughts in one's own words, often to clarify meaning or demonstrate understanding.

Identifying Your Goal

The process of determining what you aim to achieve in a particular situation or endeavor.

But Messages

Statements in which the word but diminishes or negates whatever has been said prior to but.

Fight-flight Responses

Physical and psychological reactions that prepare an individual to confront or escape a perceived threat or stressor.