Find journal entry to record the first interest payment

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Problem 1: Great Lake Glassware Company issues $1,100,000 of its 8?%, 10-year bonds at 97 on February? 28, 2018. The bonds pay interest on February 28 and August 31. Assume that Great Lake uses the straight-line method for amortization. The journal entry to record the first interest payment on August? 31, 2018 includes a? ________.

A. debit to Interest Expense for $42,350
B. debit to Interest Expense for $45,650
C. debit to Cash for $44,000
D. debit to Discount on Bonds Payable for 1650

Reference no: EM132686725

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