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:

NFC

Near Field Communication, a short-range wireless technology that enables the exchange of data between devices over about a 4 cm distance, commonly used for contactless payments.

Short-range

Describes communication or transmission technologies designed to work over short distances.

Wireless Network

A method of communication that uses radio waves to connect devices to the internet and to each other without the use of wires.

War Driving

War driving is the act of searching for Wi-Fi wireless networks by a person in a moving vehicle, using a portable computer, smartphone, or personal digital assistant (PDA).