The journal entry to record the interest cash payment for a bond issued at a premium results in an increase in the book value of the bond liability.

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The payment of interest for a bond issued at a premium involves a reduction in the book value of the bond liability. This is because the bond liability was recorded at a value higher than its face value, and the interest payment represents a portion of that premium that is being paid off. Therefore, the journal entry for an interest cash payment for a bond issued at a premium would decrease the book value of the bond liability, not increase it.

The Journal Entry to Record the Interest Cash Payment for a Bond