On the first day of the fiscal year, lisbon co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. orange inc. purchased the bonds on the issue date for the issue price. if lisbon uses the straight-line method for amortizing the premium, the journal entry to record the first semiannual interest payment by lisbon co. would include a debit toa. interest payable for $30,000 b. cash for $70,000 c. interest expense for $32,500 d. premium on bonds payable for $5,500

C. Interest Expense for $32,500

interest expense 32,500 debit

premium on BP    2,500 debit

                   cash                  35,000 credit

--to record interest payment--

Explanation:

proceeds:       1,050,000

face value:     1,000,000

premium on BP  50,000

straight line method is used therefore, we amortize the premium equally between payment:

the bond is outstanding for 10 years at 2 payment per year: 20 payment

50,000 / 20 = 2,500

now the cash outlay in favor to the bondholders:

1,000,000 x 7% / 2 = 35,000

The amortization decreasethe interest expense giving a value of 32,500

making option C correct.

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.