May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Oct. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Journal Interest Expense ? Premium on Bonds Payable ? Cash ?

May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Oct. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Journal Interest Expense ? Premium on Bonds Payable ? Cash ?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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