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Question(s) / Instruction(s):

A company issued 9%, 15-year bonds with a par value of $620,000. The current market rate is 9%. The journal entry to record each semiannual interest payment is:

a)            No entry is needed, since no interest is paid until the bond is due.

b)            Debit Bond Interest Expense $27,900; credit Cash $27,900.

c)            Debit Bond Interest Expense $570,000; credit Cash $570,000.

d)            Debit Bond Interest Expense $41,333; credit Cash $41,333.

e)            Debit Bond Interest Expense $55,800; credit Cash $55,800.

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