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Great Lake Glassware Company issues $1,167,000 of its 12%, 10year bonds at 96 on February 28, 2018. The bonds pay interest on February 28 and
Great Lake Glassware Company issues $1,167,000 of its 12%, 10year bonds at 96 on February 28, 2018. The bonds pay interest on February 28 and August 31. Assume that Great Lake uses the straightline method for amortization. The journal entry to record the first interest payment on August 31, 2018 includes a ________.
A. debit to Cash for $70,020
B. debit to Interest Expense for $67,686
C. debit to Discount on Bonds Payable for $2,334
D. debit to Interest Expense for $72,354
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