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The long term debt section of a company's balance sheet at December 31, 2011 showed the following: Bonds Payable (7.5%, interest payable 6/30 and 12/31,

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The long term debt section of a company's balance sheet at December 31, 2011 showed the following: Bonds Payable (7.5%, interest payable 6/30 and 12/31, due 12/31/20) $1,000,000 Less unamortized bond discount: (80,000) 920,000 The journal entry to record the interest payment on June 30, 2012, assuming a market interest rate of 9% would include: O a debit to Cash of $41,400 O a credit to Interest Expense of $41,400 O A debit to Interest Expense of $37,500 O a credit to Premium on Bonds Payable of $3,900 O a credit to Discount on Bonds Payable of $3,900

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