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The footnote to a company's financial statements reported the following data on December 31, 2018: FOOT NOTE D -- Long Term Debt 6% bonds payable,
The footnote to a company's financial statements reported the following data on December 31, 2018: FOOT NOTE D -- Long Term Debt 6% bonds payable, due 12/31/2022, with unamortized premium of $50,798 .......$750,798 (The bonds were issued on 1/1/18, and pay interest annually. The market rate when issued was 4%) What effect will the above journal entry to record the interest payment have on the accounting equation - Assets, Liabilities, and Stockholders' Equity? A. Increase, Increase, and No Effect B. Decrease, Increase, and Decrease C. Decrease, Decrease, and Decrease D. Increase, Increase, and Decrease E. No Effect, No Effect, and No Effect
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