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On January 1, 2019, Tonika Company issued a four-year, $11,800, 7% bond. The interest is payable annually each December 31. The issue price was $11,068
On January 1, 2019, Tonika Company issued a four-year, $11,800, 7% bond. The interest is payable annually each December 31. The issue price was $11,068 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense? Multiple Choice 1,011 Interest expense Bond discount Cash 185 826 O 826 Interest expense Cash 826 O 8851 Interest expense Bond discount Cash 826 O 774 Interest expense Bond discount Cash 52 826
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