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:

Melanoma

A type of skin cancer that develops from the pigment-producing cells known as melanocytes.

Squamous Cell Carcinoma

A type of cancer that arises from flat cells of the epidermis, often associated with sun exposure, and is characterized by its ability to spread to other parts of the body.

Loose Connective Tissue

A type of connective tissue that holds organs in place and provides support to other tissues while also allowing the passage of nerves and blood vessels through other tissues.

Papillary Layer

The upper layer of the dermis in the skin, containing thin collagen and elastin fibers, which provide nutrients to select layers of the epidermis.