The Journal Entry a Company Records for the Payment of Interest

question 102

Multiple Choice

The journal entry a company records for the payment of interest, interest expense, and amortization of bond premium is

• A) debit Interest Expense, credit Cash and Premium on Bonds Payable
• B) debit Interest Expense, credit Cash
• C) debit Interest Expense and Premium on Bonds Payable, credit Cash
• D) debit Interest Expense, credit Interest Payable and Premium on Bonds Payable

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Definitions:

Discrimination

Unfair treatment or prejudicial distinction of individuals based on race, gender, age, or other status instead of individual merit.

Fair Housing Act

A United States law passed in 1968 aimed at eliminating discrimination in the sale, rental, and financing of housing based on race, religion, national origin, or sex.

Exemption

A provision that removes a legal obligation or liability, often seen in tax laws, allowing certain incomes or transactions to be free from tax.

Single-family Homes

These are stand-alone houses designed to be occupied by a single family, offering privacy and space.