help to answer it and Explain Help Save a MC Qu. 150 On January 1, q company iss

Question

help to answer it and Explain

Help Save a MC Qu. 150 On January 1, q company issues.. bonds dated Janu ary 1 with a par value of $330,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid ser anni ate is 8% and the bonds are sold for S343395. The journal entry to record the inst int ne 30 (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense $13,510: debit Discount on Bonds Poyable $1,340 credit Cesh $14.850 Discount en Bonds Poyabie S1.340 credi Cash Si4 850 Debit Interest Payable $14,850, credit Cosh $14.850 Debit Bond Interest Expense $16,190, credn Discount on Bonds Reyable $1340, credit Cosh S4.850 Debit Bond Interest Expense $16.190, credt Premiun on Boncs Payoble $1340. credith$14.850 Debit Bond Interest Expense $13,510 debit Premium on Bonds Payable $1340. credt Cash $14.850

Explanation / Answer

Answer C.

Debit Bond Interest Expense        $16190

credit Cash                                               $14,850

credit Discount on Bonds Payable                $1340

cash Interest Exp = $330000*9%*1/2 = $14850

Discount on amortize = (343395-330000)/10 = $13395/10 =$1340

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