In May 2017, Apple (NASDAQ: AAPL) filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.)

With the bond proceeds, Apple will be buying back its own stock. Apple has also indicated that there will be a 10.5 percent dividend increase for its shareholders.

Q5.) What journal entry would be made for the payment of interest (ignore the dollar amount - just account title(s) and debit/credit).