Question:On January 1, Hurley Corporation issues $500,000, 5-years,12% bonds at 96 with interest payable on July 1 and January 1. The entry on July 1 to record payment of bond interest and the amortization of bond discount using the straight-line method will include a:
A debit to Interest Expense $30,000.
B debit it Interest Expense $60,000.
C credit to Discount on Bonds Payable $4,000.
D credit ti Discount on Bonds Payable $2000.
+ AnswerD
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