Under the effective method of amortizing bond premium, the interest expense recorded for each semiannual interest payment a. is equal to the face value of the bond times the coupon rate of interest for each semiannual interest period. O b. is equal to the selling price of the bond times the coupon rate of interest. Oc. will equal the amount of cash paid for each semiannual interest payment. d. will decrease over the life of the bonds. e. will increase over the life of the bonds. QUESTION 8 The account Dividends Payable is a. debited on the date of declaration. b. credited on the date of payment. O c. not a legal liability of the company. d. a liability on a balance sheet prepared between the date of declaration and the date of payment. e. a contra account found in the stockholders' equity section of the balance sheet