Exhibit 14-12 On January 1, 2016, Jewels, Inc sold $200,000 of its 12% five-year bonds to yield 10%. Interest is paid each January 1 and July 1, and effective interest amortization is used. On May 1, 2018, Jewels, retired $100,000 of the bonds at 104. The book value of the bonds on December 31, 2017, was $212,926. ? Refer to Exhibit 14-12. Which of the following would be included in the
interest accrual entry on May 1, 2018?
A) credit to Interest Payable for $3,333
B) debit to Bond Interest Expense for $3,549
C) credit to Discount on Bonds Payable for $4,259
D) debit to Premium on Bonds Payable for $451
B
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