Question 80
Multiple Choice
Samuel's, Inc. sold $15,000 of 6% bonds to an individual on April 1 at par value. The bonds pay interest on June 30 and December 31 each year. What are the proper entries for the sale of the bonds and the June 30 payment of the interest for these bonds? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)
Account Debit Credit April 1 Cash 15 , 225 Interest Payable 225 Bonds Payable 15 , 000 \begin{array} { | l | c | c | r | } \hline & \text { Account } & \text { Debit } & { \text { Credit } } \\\hline \text { April 1 } & \text { Cash } & 15,225 & \\\hline & \text { Interest Payable } & & 225 \\\hline & \text { Bonds Payable } & & 15,000 \\\hline\end{array} April 1 Account Cash Interest Payable Bonds Payable Debit 15 , 225 Credit 225 15 , 000 Account Debit Credit June 30 Interest Expense 225 Interest Payable 225 Cash 450 \begin{array} { | l | l | r | r | } \hline &{ \text { Account } } & { \text { Debit } } & \text { Credit } \\\hline \text { June 30 } & \text { Interest Expense } & 225 & \\\hline & \text { Interest Payable } & 225 & \\\hline & \text { Cash } & & 450 \\\hline\end{array} June 30 Account Interest Expense Interest Payable Cash Debit 225 225 Credit 450 Account Debit Credit April 1 Cash 15 , 000 Bonds Payable 15 , 000 \begin{array} { | l | l | r | r | } \hline & { \text { Account } } & \text { Debit } & \text { Credit } \\\hline \text { April 1 } & \text { Cash } & 15,000 & \\\hline & \text { Bonds Payable } & & 15,000 \\\hline\end{array} April 1 Account Cash Bonds Payable Debit 15 , 000 Credit 15 , 000 Account Debit Credit June 30 Interest Expense 450 Cash 450 \begin{array} { | l | l | r | r | } \hline & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { June 30 } & \text { Interest Expense } & 450 & \\\hline & \text { Cash } & & 450 \\\hline\end{array} June 30 Account Interest Expense Cash Debit 450 Credit 450 Account Debit Credit April 1 Cash 675 Interest Payable 450 Bonds Payable 225 \begin{array} { | l | c | r | r | } \hline & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { April 1 } & \text { Cash } & 675 & \\\hline & \text { Interest Payable } & & 450 \\\hline & \text { Bonds Payable } & & 225 \\\hline\end{array} April 1 Account Cash Interest Payable Bonds Payable Debit 675 Credit 450 225 Account Debit Credit June 30 Interest Expense 450 Interest Payable 450 \begin{array} { | l | c | r | r | } \hline & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { June 30 } & \text { Interest Expense } & 450 & \\\hline & \text { Interest Payable } & & 450 \\\hline\end{array} June 30 Account Interest Expense Interest Payable Debit 450 Credit 450 Account Debit Credit April 1 Cash 15 , 300 Interest Payable 300 Bonds Payable 15 , 000 \begin{array} { | l | c | c | r | } \hline & \text { Account } & \text { Debit } & { \text { Credit } } \\\hline \text { April 1 } & \text { Cash } & 15,300 & \\\hline & \text { Interest Payable } & & 300 \\\hline & \text { Bonds Payable } & & 15,000 \\\hline\end{array} April 1 Account Cash Interest Payable Bonds Payable Debit 15 , 300 Credit 300 15 , 000 Account Debit Credit June 30 Interest Payable 300 Interest Expense 150 Cash 450 \begin{array} { | l | l | r | r | } \hline &{ \text { Account } } & { \text { Debit } } & \text { Credit } \\\hline \text { June 30 } & \text { Interest Payable } & 300 & \\\hline & \text { Interest Expense } & 150 & \\\hline & \text { Cash } & & 450 \\\hline\end{array} June 30 Account Interest Payable Interest Expense Cash Debit 300 150 Credit 450
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