Sisco Company issued $500,000, 6%, 10-year bonds for $425,000 with a market rate of 8%. The effective-interest
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Sisco Company issued $500,000, 6%, 10-year bonds for $425,000 with a market rate of 8%. The effective-interest method of amortization is to be used and interest is paid annually. The journal entry on the first interest payment date would include a:
A. debit to Interest Expense of $30,000
B. credit to Cash of $34,000
C. credit to Discount Payable of $4,000
D. debit to Interest Expense of $4,000
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