If bonds have been issued at a discount and the effective-interest method is used,the journal entry for payment of bond interest would include:
A)a debit to cash.
B)a debit to discount on bonds payable.
C)a credit to interest expense.
D)a debit to interest expense.

Question

Quizplus · Accepted Answer

The effective-interest method involves debiting interest expense for the total amount of interest recognized, which includes both the actual cash paid and the amortization of the discount on bonds payable.

If Bonds Have Been Issued at a Discount and the Effective-Interest