On the first day of the fiscal year, a company issues a $800,000, 6%, 5 year bond that pays semi-annual interest of $24,000 ($800,000 x 6% x 1/2), receiving cash of $690,960. Journalize the entry to record the first interest payment and the amortization of the related bond discount 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 Premium on Bonds Payable Correct 2	Correct 3	Correct 4
	Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Interest Revenue Correct 5	Correct 6	Correct 7
	Bonds Payable Cash Interest Expense Notes Payable Premium on Bonds Payable Correct 8	Correct 9