When Bonds are issued at a discount, the semiannual Bond Interest Expense is a. the semiannual...

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When Bonds are issued at a discount, the semiannual Bond Interest Expense is a. the semiannual...

When Bonds are issued at a discount, the semiannual Bond Interest Expense is

	a.	the semiannual bond interest payment + the semiannual amortization of the bond discount
	b.	the semiannual bond interest payment - the semiannual amortization of the bond discount
	c.	the semiannual bond interest payment + interest on the bond discount
	d.	the semiannual bond interest payment - interest on the bond discount

business accounting

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Answer 1

Answer #1

The Answer is A. The semiannual bond interest payment + the semiannual amortization of the bond discount

Entry:

Date	Account Name	Debit	Credit
xx	Interest Expense [Semi Annual]	$ -
	Discount on Bonds Payable [Semi Annual Amortization]		$ -
	Cash [Semi Annual Interest Payment]		$ -
	( To record interest expense paid)

So, Remaining options are not correct.

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Answer 2

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