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Needs some help on Accounting. Question 4 3.33 pts On January 1, 2020, Tiger Inc. issued $500,000 face value, 6%, 5 year bonds for 101.
Needs some help on Accounting.
Question 4 3.33 pts On January 1, 2020, Tiger Inc. issued $500,000 face value, 6%, 5 year bonds for 101. The bonds pay interest semiannually on June 30 and December 31. The journal entry necessary on June 30, 2020 to record the first interest payment would include: Adebit to interest Expense for $14.500, a debit to Premium on Bonds Payable for $500, and a credit to Cash for $15.000 Adebit to interest Expense for $15,000, and a credit to Cash for $15.000. A debit to Interest Expense for $14.500, a debit to Discount on Bonds Payable for $500, and a credit to Cash for $15.000 A debit to interest Expense for $15.500, a credit to Premium on Bonds Payable for $500, and a credit to Cash for $15.000Step by Step Solution
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