Homework Answers
| Period | Interest expense | Cash interest | Discount amortized | Carrying value |
| January 1,2016 | 96832.72 | |||
| June 30,2016 | 5325.80 | 5000 | 325.80 | 97158.52 |
| Dec 31,2016 | 5343.72 | 5000 | 343.72 | 97502.24 |
| June 30,2017 | 5362.62 | 5000 | 362.62 | 97864.86 |
| Dec 31,2017 | 5382.57 | 5000 | 382.57 | 98247.43 |
| The journal entry in Dec. 31,2017 is: | ||||
| Debit | Credit | |||
| Interest expense | 5382.57 | =97864.86*11%*6/12 | ||
| Discount on Bonds payable | 382.57 | |||
| Cash | 5000 | =100000*10%*6/12 | ||
| a debit to interest expense of $5,382.57 | ||||
| Option A is correct | ||||
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