Business, 17.06.2021 16:40 ultimatesaiyan

On January 1, a company issues bonds dated January 1 with a par value of $430,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $412,577. The journal entry to record the first interest payment using straight-line amortization is:.a. Debit Interest Payable $15,050.00; credit Cash $15,050.00. b. Debit Interest Expense $15,050.00; credit Cash $15,050.00.
c. Debit Interest Expense $16,792.30; credit Discount on Bonds Payable $1,742.30; credit Cash $15,050.00.
d. Debit Interest Expense $13,307.70; debit Discount on Bonds Payable $1,742.30; credit Cash $15,050.00.
e. Debit Interest Expense $16,792.30; credit Premium on Bonds Payable $1,742.30; credit Cash $15,050.00.

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On January 1, a company issues bonds dated January 1 with a par value of $430,000. The bonds mature...

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