need help on getting the Interest Expense and Bond Payable,net 10. value: 10.00

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need help on getting the Interest Expense and Bond Payable,net

10. value: 10.00 points On January 1. 2015, Buchheit Enterprises reported $142,500 in a liability called "Bonds Payable. Net' This liability related to a $150.000 bond with a stated interest rate of 5 percent that was issued when the market interest rate was 6 percent Assuming that interest is paid December 31 each year, prepare the joumal entry to record interest paid on December 31.2015, using the simplified effective-interest method (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) view transaction list | | ournal entry worksheet | Date General Journal DebitCredit December 31, 2015 Interest Expense Bonds Payable. Net Cash 7.500

Explanation / Answer

journal entry under Effective interest method;

*interest expenses : $142,500 x 6% = $8,550

Date General journal Debit Credit Dec,31,2015 interest expenses* 8,550 Bonds payable, net 1,050 Cash 7,500

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