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3 1 pts The 5,000, $1,000 face value bonds issued by Cage Company on March 1, 20X1 pay interest at a 9% annual rate semiannually

3 1 pts The 5,000, $1,000 face value bonds issued by Cage Company on March 1, 20X1 pay interest at a 9% annual rate semiannually on April 1 and October 1. Which of the following is part of the adjusting entry to be made on December 31, 20X1? A DEBIT to Prepaid Interest Expense for $112,500 A CREDIT to Interest Payable for $225,000 A CREDIT to Cash for $112,500 No adjusting entry needed OA DEBIT to Prepaid Interest Expense for $225,000 A CREDIT to Interest Payable for $112,500 A CREDIT to Cash for $225,000

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