A bond was issued at a premium. The journal entry to record the semiannual interest payment would include:
A) a debit to interest expense, a debit to premium on bonds payable and a credit to cash.
B) a debit to interest expense, a credit to premium on bonds payable and a credit to cash.
C) a debit to interest expense, a debit to cash and a credit to premium on bonds payable.
D) a debit to premium on bonds payable and a credit to cash.
Correct Answer:
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