The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is

A) debit Interest Expense, credit Cash

B) debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

C) debit Interest Expense and Discount on Bonds Payable, credit Cash

D) debit Interest Expense, credit Cash and Discount on Bonds Payable

On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. The journal entry to record the amortization of the premium (by the straight-line method) for the year by Lisbon Co. includes a debit to

A) Premium on Bonds Payable for $2,500

B) Interest Expense for $5,000

C) Premium on Bonds Payable for $5,000

D) Interest Expense for $2,500

The present value of $60,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed.

Present Value of $1 at Compound Interest
Periods	5%	6%	7%	10%	12%
1	0.95238	0.94340	0.93458	0.90909	0.89286
2	0.90703	0.89000	0.87344	0.82645	0.79719
3	0.86384	0.83962	0.81630	0.75132	0.71178
4	0.82270	0.79209	0.76290	0.68301	0.63552
5	0.78353	0.74726	0.71299	0.62092	0.56743
6	0.74622	0.70496	0.66634	0.56447	0.50663
7	0.71068	0.66506	0.62275	0.51316	0.45235
8	0.67684	0.62741	0.58201	0.46651	0.40388
9	0.64461	0.59190	0.54393	0.42410	0.36061
10	0.61391	0.55840	0.50835	0.38554	0.32197

A) $63,396

B) $56,604

C) $60,000

D) $3,396