TB 14-90 Tulilo Corp

Tulilo Corp issues $750,000, 10%, 15-year bonds. The current market rate is 10%. The journal entry to record the semiannual interest payment, assuming the effective interest method is used, is

Multiple Choice

• Cash	12,500
  Bond Interest Expense		12,500

• Bond Interest Expense	25,000
  Cash		25,000

• Bond Interest Expense	13,750
  Bond Payable		13,750

• Bond Interest Expense	13,750
  Cash		13,750

• Bond Interest Expense	25,000
  Bond Payable		25,000