can you please answer in detail McIntosh Corporation issued $100,000 of 12%, 20-

ID: 2521237 • Letter: C

Question

can you please answer in detail

McIntosh Corporation issued $100,000 of 12%, 20-year bonds payable on January 1, 2016 . The market interest rate when the bonds were i paid semiannually on January 1 and July 1. The first interest payment is July 1, 2016. Mcl amortization method. ssued was 13%. Inte Intosh recorded interest expense of $6,040 using the effective-interest McIntosh's entry to record the interest expense on July 1, 2016, will include a O A. debit to Bonds Payable. O B. debit to Premium on Bonds Payable. O c. credit to Discount on Bonds Payable O D. credit to Interest Expense

Explanation / Answer

Answer would be C

credit to discount on bonds payable

Journal entry would be

date

explanation

debit

credit

1-Jul

interest expense

6040

cash

6000

discount on bonds payable