The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual

Question

The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable. 2 Refer to Question 2. The entry to record the semiannual interest payment is: A. Interest Expense 15,000 B. Interest Expense 30,000 C. Interest Expense 30,000 D. Interest Expense15,000 Cash Cash Interest Payable Interest Payable 15,000 30,000 30,000 15,000

Explanation / Answer

1)correct option is "B"

Entry:

cash debit and bond payable credit with $ 500,000

2)correct option is "A"

Interest expense debit and cash credit 15000

*interest =500000*.06*6/12=15000

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