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Business, 12.07.2019 00:20 bCrawfish

On january 1, a company issues bonds dated january 1 with a par value of $600,000. the bonds mature in 3 years. the contract rate is 7%, and interest is paid semiannually on june 30 and december 31. the bonds are sold for $564,000. the journal entry to record the first interest payment using straight-line amortization is:
a) debit interest expense $15,000; debit discount on bonds payable $6,000; credit cash $21,000.
b) debit interest expense $21,000; credit cash $21,000.
c) debit interest payable $21,000; credit cash $21,000.
d) debit interest expense $21,000; credit premium on bonds payable $6,000; credit cash $15,000.
e) debit interest expense $27,000; credit discount on bonds payable $6,000; credit cash $21,000.

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On january 1, a company issues bonds dated january 1 with a par value of $600,000. the bonds mature...
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