q37

Help Save & Exit John Deere is an American manufacturer of agricultural, construction, and forestry machinery. In order to raise capital, John Deere issued five-year, $50,000,7% bonds on January 2, 2020, with interest payable annually each December 31. The issue price was $54,330 based on an 5% market rate. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2020 interest expense? Multiple Choice Interest expense 2,717 Premium on bonds payable 7839 Cash 3.500 3.500 O Interest expense 3,500 Cash 1.359 Interest expense 592 Discount on bonds payable 1:750 Cash