QUESTION 15 On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of 537,258. What is the journal entry to record the first annual payment? A. Debit Cash $250,000; debit interest Expense $37,258; credit Notes Payable $287,258. B. Debit Interest Expense $37,258; credit Cash $37.258. C. Debit interest Expense $20,000: credit Cash $20,000 D. Debit interest Expense $20,000: debit Interest Payable $17,258: Credit Cash $37.258. E. Debit Interest Expense $20,000; debit Notes Payable $17.258: credit Cash $37,258. QUESTION 16 On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312.177. The journal entry to record the issuance of the bond is: A. Debit Cash $312.177: credit Discount on Bonds Payable $12.177: credit Bonds Payable $300,000. B. Debit Cash $300,000: debit Premium on Bonds Payable 512.177: credit Bonds Payable $312.177. C. Debit Bonds Payable $300,000: debit Bond Interest Expense $12.177: credit Cash $312.177. D. Debit Cash $312.177: credit Premium on Bonds Payable $12.177: credit Bonds Payable $300,000 E. Debit Cash $312.177: credit Bonds Payable $312.177. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers