The Duros Corp issued a $1,000,000, 5%, 10 year bond at 105. This pays interest annually and the company uses a straight-line amortization for all premiums and discounts. Which entry properly reflects the payment of the first year of interest and proper treatment of the premium or discount (if applicable)? Question 9 options: Interest Expense Cash 50000 50000 Interest Expense 55000 Discount on Bonds Payable Cash 50000 Interest Expense 47500 Premium on Bonds Payable Cash 52500 Interest Expense 45000 Premium on Bonds Payable Cash 50000 5000 5000 5000

The Duros Corp issued a $1,000,000, 5%, 10 year bond at 105. This pays interest annually and the company uses a straight-line amortization for all premiums and discounts. Which entry properly reflects the payment of the first year of interest and proper treatment of the premium or discount (if applicable)? Question 9 options: Interest Expense Cash 50000 50000 Interest Expense 55000 Discount on Bonds Payable Cash 50000 Interest Expense 47500 Premium on Bonds Payable Cash 52500 Interest Expense 45000 Premium on Bonds Payable Cash 50000 5000 5000 5000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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