Spring Inc, a claendar-year firm, is authorized to issue $ 200,000 of 10%, 20 year bonds dated January 1, 2022, with interest payable on January 1 and July 1 of each year. If the bonds were issued to yield 12%, the entry to account for the discount amortization and accrual of interest on December 31, 2022, would include a Question

Spring Inc, a claendar-year firm, is authorized to issue $ 200,000 of 10%, 20 year bonds dated January 1, 2022, with interest payable on January 1 and July 1 of each year. If the bonds were issued to yield 12%, the entry to account for the discount amortization and accrual of interest on December 31, 2022, would include a

Question 13 options:

a)	debit to Bonds Payable

b)	debit to Discount on Bonds Payable

c)	credit to Interest Payable

d)	Credit to Cash

Expert Answer

The detailed answer for the above question is provided below: The correct option is b) debit to Disc View the full answer