The journal entry to record a semiannual interest payment on a bond payable issued at par:
A)debits Interest Expense and credits Bonds Payable.
B)debits Interest Expense and credits Cash.
C)debits Cash and credits Interest Payable.
D)debits Cash and credits Interest Expense.

Question

Quizplus · Accepted Answer

When a semiannual interest payment is made, it needs to be recorded in the company's books. The interest expense needs to be recognized, and the company needs to pay this amount in cash. Therefore, the correct journal entry will be to debit Interest Expense and credit Cash.

The Journal Entry to Record a Semiannual Interest Payment on a Bond