Solderman Company issued $510,000,7%,10-year bonds for $422,800 with a market rate of 9%.The effective interest method of amortization is used and interest is paid annually.The journal entry on the first interest payment date would include a:
A) credit to Interest Expense of $35,700.
B) credit to Cash of $38,052.
C) credit to Cash of $35,700.
D) credit to Interest Expense of $38,052.
Correct Answer:
Verified
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