If bond interest expense is $300,000, bond interest payable decreased by $4,000 and bond premium decreased by $1,000, cash paid for bond interest is:
A) $295,000.
B) $300,000.
C) $303,000.
D) $305,000.

Question

Quizplus · Accepted Answer

$$\begin{array} { | l | r | r | } 
\hline \text { Preniurn on bond } & 1 & \
\hline \text { Interest expense } & 300 & \
\hline \text { Bond interest payable } & 4 & \
\hline \text { Cash } & & 305 \
\hline
\end{array}$$

If Bond Interest Expense Is $300,000, Bond Interest Payable Decreased