What the journal entry on the first interest payment date

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Question - Silk Company issued $500,000 of 7%, 10-year bonds on January 1st for $431,850 with semi annual interest payments on July 1 and January 1.  The effective interest rate is 9%. The effective-interest method of amortization is to be used.

What the journal entry on the first interest payment date, to record the payment of interest and amortization of discount?

a. credit to cash of $1,933.

b. debit to discount on Bonds Payable of $1,933.

c. credit to discount on Bonds Payable for $17,500.

d. debit to bond interest expense of $19,433.

Reference no: EM133035886

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