If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is:
A) $790,000.
B) $784,000.
C) $806,000.
D) $910,000.

Question

Quizplus · Accepted Answer

$$\begin{array} { | l | r | r | } 
\hline \text { Interest expense } & 800 & \
\hline \text { Interest payable } & & 8 \
\hline \colorbox{white}{\text { Discount }} & & 2 \
\hline \text { Cash } & & 790 \
\hline
\end{array}$$

If Bond Interest Expense Is $800,000, Bond Interest Payable Increased