Question: (A) Prepare the entry to record the interest expense on October 1, 2012. Assume that accrued interest payable was credited when the bonds were issued

    • (A) Prepare the entry to record the interest expense on October 1, 2012. Assume that accrued interest payable was credited when the bonds were issued (Round to the nearest dollar). Interest Payable ($293,820 X 2/6) $97,940 Interest Expense ($293,820 X 4/6) + $5,976 $2,01,856 Discount on Bonds Payable Cash ($5,876,400 X 10% รท 2).

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