10)

On January 1, 2015, Buchheit Enterprises reported $266,000 in a liability called Bonds Payable, Net. This liability related to a $280,000 bond with a stated interest rate of 5 percent that was issued when the market interest rate was 7 percent. Assuming that interest is paid December 31 each year, prepare the journal entry to record interest paid on December 31, 2015, using the simplified effective-interest method.

a) Record the interest payment on December 31, 2015.

Date	General Journal	Debit	Credit
December 31,2015