The journal entry a company records for the interest payment and amortization of bond discount is
A) debit Interest Expense, credit Cash and Discount on Bonds Payable
B) debit Interest Expense, credit Cash
C) debit Interest Expense and Discount on Bonds Payable, credit Cash
D) debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

Question

Quizplus · Accepted Answer

The correct answer is A because the company records the interest payment as a debit to Interest Expense and a credit to Cash. The amortization of bond discount is recorded as a debit to Interest Expense and a credit to Discount on Bonds Payable.

The Journal Entry a Company Records for the Interest Payment