rate is 8%. The journal entry to record each semiannual interest payment is: A. Bond Interest Expense B. Bond Interest Expense C. Bond Interest Expense D. Bond Interest Expense E. No entry is needed since not interest is payable until bond maturity 5. A company issued 8%. I 5-year bonds with a par value of $550,000. The c 22,000 44,000 550,000 LE B.1 Cash Cash Cash Bond Payable 22,000 44,000 550,000 660,000 05 0.9 0.9 0.94 0.93 0.92. 0.91 0.905 0.887 878 6. When a bond sells at a premium A) The contract rate is above the market rate. B) The contract rate is equal to the market rate. C) The contract rate is below the market rate. D) It means that the bond is a zero coupon bond E) The bond pays no interest. 8613 8328 360 277 195 19 7. A company received cash proceeds of $206,948 on a bond issue with a par value of S200,000. The difference between par value and issue price for this bond is recorded as a: A) B) C) D) E) Credit to Interest Income. Credit to Premium on Bonds Payable. Credit to Discount on Bonds Payable. Debit to Premium on Bonds Payable. Debit to Discount on Bonds Payable. 8, A company issued 5-year, 7% bonds with a par value of $100,000. The company received $102,053 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: A) $3,294.70 B $3,500.00 C) $3,705.30 D) $7,000.00. E) $7,410.60