On October 1, 2017 Macklin Corporation issued 5%, 10-year bonds with a face value of $6,000,000...
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On October 1, 2017 Macklin Corporation issued 5%, 10-year bonds with a face value of $6,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. 16. The entry to record the issuance of the bonds would include a credit of A) $150,000 to Interest Payable. B) $240,000 to Discount on Bonds Payable. C) $5,760,000 to Bonds Payable. D) $240,000 to Premium on Bonds Payable. 17. Bond interest expense reported on the December 31, 2017 income statement of Macklin Corporation would be A) $69,000 B) $75,000 C) $81,000 D) $138,000 On October 1, 2017 Macklin Corporation issued 5%, 10-year bonds with a face value of $6,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. 16. The entry to record the issuance of the bonds would include a credit of A) $150,000 to Interest Payable. B) $240,000 to Discount on Bonds Payable. C) $5,760,000 to Bonds Payable. D) $240,000 to Premium on Bonds Payable. 17. Bond interest expense reported on the December 31, 2017 income statement of Macklin Corporation would be A) $69,000 B) $75,000 C) $81,000 D) $138,000
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