Practice Question 44 xl The bonds were issued at $960,o00 ($1,000,000 40 iscount (s1 000 $960,000). This discount is amortized over five periods of $8/000 per interest period ($40,000/5 periods). The journal entry for the accr debit to Interest Expense for $68,000, a credit t credit to interest Payable for $60,000 ual Discount of Bonds Payable for s8 000 December 31 will include a Payable for se ood, and on January 1, Hurley Corporation issues $1,000,000, S-year, 129% bonds at 96 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a 9 debit to Interest Expense, $120,000. credit to Discount on Bonds Payable, s8.oo0 debit to Interest Expense, $60,000 debit to Interest Expen5e debit to Discount on Bonds Payable, $8,000. 5 Practice Question 4 On January 1, Hurley Corporation issues $500,000 5-year, 12% bonds at 96 with interest payable on January 1. The entry on January 1 to record payment of bond interest assuming amrtization of bond discount used the straight-ine method will indludea credit to Discount on Bonds Payable $4,000. debit to Interest Expense $60,000 debit to Interest Expense $30,000. credit to Cash $60,000