A company issued 8%, 15-year bonds with a par value of $550,000. The current market...
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Accounting
A company issued 8%, 15-year bonds with a par value of $550,000. The current market rate is 8%. The journal entry to record each semiannual interest payment is:
Debit Bond Interest Expense $660,000; credit Cash $660,000.
Debit Bond Interest Expense $44,000; credit Cash $44,000.
No entry is needed, since no interest is paid until the bond is due.
Debit Bond Interest Expense $22,000; credit Cash $22,000.
Debit Bond Interest Expense $36,667; credit Cash $36,667.
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