Kizspy | Question: 22
(Choose 1 answer)
A company issued 8%, 15-year bonds with a par value of $600,000 that pay interest semiannually. The current
market rate is 8%. The journal entry to record each semiannual interest payment is:
A. Debit Bond Interest Expense $24,000; credit Cash $24,000.
B. Debit Bond Interest Expense $48,000; credit Cash $48,000.
C. Debit Bond Interest Payable $24,000; credit Cash $24,000.
D. Debit Bond Interest Expense $600,000; credit Cash $600,000.
E. No entry is needed.
