The long term debt section of a company's balance sheet at December 31, 2011 showed the...

 

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The long term debt section of a company's balance sheet at December 31, 2011 showed the following: $1,000,000 Bonds Payable (7.5%, interest payable 6/30 and 12/31, due 12/31/20) Less unamortized bond discount: (80,000) 920,000 Record the journal entry to record the interest payment on June 30, 2012, assuming a market interest rate of 9% The long term debt section of a company's balance sheet at December 31, 2011 showed the following: $1,000,000 Bonds Payable (7.5%, interest payable 6/30 and 12/31, due 12/31/20) Less unamortized bond discount: (80,000) 920,000 Record the journal entry to record the interest payment on June 30, 2012, assuming a market interest rate of 9%

Answer rating: 100% (QA)

To record the interest payment on June 30 2012 we need to debit Interest Expense and credit Ca... View the full answer