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Business, 21.04.2020 15:52 spreadlight10

A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $22,000; credit Cash $22,000. Debit Bond Interest Expense $44,000; credit Cash $44,000. Debit Bond Interest Payable $22,000; credit Cash $22,000. Debit Bond Interest Expense $550,000; credit Cash $550,000. No entry is needed, since no interest is paid until the bond is due.

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A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semiannually. The...
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