5. An accountant of a company recorded the payment of rent for 5 months from 1 December 2019 to 30 April 2020 for $50,000 on 1 December 2019: Dr. Rent Expense $50,000 Cr. Cash $50,000 Suppose the accountant did not make any adjusting entries regarding rent at 31 December 2019, this will result in: A. no error in rent expense as the rent expense has been recorded. B. overstatement of net income for the year ended 31 December 2019. C. understatement of rent expense. D. understatement of asset. Use the following information to complete question 6-8. On 1 April 2020, Blueray Corporation issues $20,000,000 of 10%, 20-year bonds payable at 101. Interest on the bonds is payable semiannually each 1 April and 1 October. 6. The journal entry to record the issue of bond on 1 April 2020 will include: I. a debit to Cash of $20,000,000. II. a credit to Bonds Payable of $20,000,000. III. a debit to Discount on Bond Payable of $200,000. IV. a credit to Premium on Bond Payable of $200,000. A. I only B. II and IV C. I, II and III D. I, II and IV 7. The journal entry to record the first cash payment to bondholders on 1 October 2020, will include: A. a credit to Cash of $2,000,000. B. a debit to Premium on Bonds Payable of $5,000. C. a debit to Interest Expense of $1,000,000. D. a debit to Bond Payable of $1,000,000. 8. The adjusting entry required on 31 December 2020, related to this bond issue involves: A. recognition of Interest Expense of $500,000. B. recognition of Interest Expense of $497,500. C. a credit to Interest Payable of $497,500. D. a credit to Cash of $500,000