Question
On October 1, 2020 MK Corporation issues a bond for $110,000 cash. The bond has a face value of $100,000. Interest is paid quarterly. On
On October 1, 2020 MK Corporation issues a bond for $110,000 cash. The bond has a face value of $100,000. Interest is paid quarterly. On January 1, 2021 the company records the following entry for the first coupon payment: Interest expense 5,500 Premium 500 Cash 6,000 (to record interest expense) Which of the following would be included in the journal entry to record the next coupon payment which the company pays in cash on April 1, 2021? DEBIT to Interest Expense for $5,225 DEBIT to Interest Expense for $5,525 DEBIT to Interest Expense for $5,000 DEBIT to Interest Expense for $5,425 DEBIT to Interest Expense for $5,500 DEBIT to Interest Expense for $5,475
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