Premium = 50000 x 4% = $2000
Account Titles | Debit | Credit |
Interest expense | $3400 | |
Premium on bonds payable (2000/20) | 100 | |
Cash (50000x7%) | $3500 |
Option c is correct answer.
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds...
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