Question
Use the information below to answer questions 30) and 31). E 21-7 Determine cash paid for bond interest Determine the amount of cash paid
Use the information below to answer questions 30) and 31). E 21-7 Determine cash paid for bond interest Determine the amount of cash paid to bondholders for bond interest for each of the six independent situations below. All dollars are in millions. Situation Interest Expeme Interest Payable Increase (Decrease) Unamortized Discount Increase (Decrease) Cash Paid for Interest 1 10 0 2 10 2 10 (2) 0 0 4 10 (3) 5 (3) 10 2 (3) 10 (2) 30. Situation 3: A) Summary Entry Interest expense.. Cash (paid to bondholders).. B) Summary Entry Interest expense... C) Interest payable.. Cash (paid to bondholders). Summary Entry Interest expense...... D) Discount on bonds payable........ Cash (paid to bondholders) Summary Entry Interest expense.. Interest payable....... Cash (paid to bondholders).. 10 10 10 10 10 20 8 37 10 2 12
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