Company

x

issues 100 bonds totaling

$100,000

on January

1^(st ),2022

at

3%

interest when the market rate is

4%

. The bond term is 10 years. The interest will be paid on January 1,2023 . The adjusting journal entry to recognize the interest on December

31^(st )

will include:\ Debit to Interest Expense for

$3,676

\ Debit to Bonds for

$3,000

.\ Credit to Cash for

$3,676

.\ Debit to Discount for

$3000

.\ 1\ 2\ 3\ 4

Company X issues 100 bonds totaling $100,000 on January 1st,2022 at 3% interest when the market rate is 4%. The bond term is 10 years. The interest will be paid on January 1,2023 . The adjusting journal entry to recognize the interest on December 31st will include: 1. Debit to Interest Expense for $3,676 2. Debit to Bonds for $3,000. 3. Credit to Cash for $3,676. 4. Debit to Discount for $3000