A company issued 7%, 15-year bonds with a par value of $540,000 that pay interest semiannually. The

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A company issued 7%, 15-year bonds with a par value of $540,000 that pay interest semiannually. The market rate on the date of Issuance was 7%. The journal entry to record each semiannual interest payment is

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Debit Bond Interest Expense 518,900, credit Cath $18,900

Debit Bond Interest Expense $37,800 credit Cash $37,800

Debit Bond Interest Payable $36,000 credit Cash 536,000

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A company issued 7%, 15-year bonds with a par value of $540,000 that pay interest semiannually. The

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