Question
On January 2, , Ming Corporation issued $200,000, 10%, 10-year bonds for $160,000. The bonds pay interest each December 31. Ming Corporation uses the straight-line
On January 2, , Ming Corporation issued $200,000, 10%, 10-year bonds for $160,000.
The bonds pay interest each December 31. Ming Corporation uses the straight-line method to amortize premium or discount. On December 31, , Ming Corporation would record a:
A. credit to Cash for $16,000.
B. debit to Interest Expense for $24,000.
C. debit to Interest Expense for $16,000.
D. credit Premium on Bonds Payable for $4,000.
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
