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On Jan 1, 2019, Bongo Corporation issues $5,000,000 of 10 -year bonds, 6% bonds that pay interest semiannually. The selling price was for $4,644,690 when
On Jan 1, 2019, Bongo Corporation issues $5,000,000 of 10 -year bonds, 6% bonds that pay interest semiannually. The selling price was for $4,644,690 when the market rate of interest was 7%. Bongo Corporation uses the effective-interest method of amortization. Interest is paid each June 30 and December 31 . The entry to record the first semi-annual interest payment on June 30,2019 , will include a: Select one: a. debit to Bonds Payable of $12,564 b. debit to Interest Expense of $162,564 c. credit to interest expense of $150,000 d. debit to cash for $150,000
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