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A company issues $500,000 of 8%, 10-year bonds dated on January 1, 2004, that mature on December 31, 2013, and pay interest semiannually on each
A company issues $500,000 of 8%, 10-year bonds dated on January 1, 2004, that mature on December 31, 2013, and pay interest semiannually on each June 30 and December 31. What entry should be made on December 31, 2004?
Debit Bond Interest Expense $40,000; Credit Bond Interest Payable $40,000 | ||
Debit Bond Interest Expense $40,000; Credit Cash $40,000 | ||
Debit Bond Interest Expense $20,000; Credit Bond Interest Payable $20,000 | ||
Debit Bond Interest Expense $20,000; Credit Cash $20,000 | ||
None of the above |
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