On the first day of the fiscal year, a company issues a $689,000, 9%, 10-year bond that pays semi-annual interest of $31,005 ($689,000 x 9% x 1/2), receiving cash of $723,500. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.

Hide

If an amount box does not require an entry, leave it blank, or enter zero "0".

	Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Correct 2	Correct 3	Correct 4
	Bonds Payable Cash Discount on Bonds Payable Interest Revenue Premium on Bonds Payable Correct 5	Correct 6	Correct 7
	Bonds Payable Cash Discount on Bonds Payable Interest Expense Premium on Bonds Payable Correct 8	Correct 9	Correct 10