A company issued 8%, 15-year bonds with a par value of $470,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:
A. Debit Bond Interest Payable $31,333; credit Cash $31,333.
B. Debit Bond Interest Expense $420,000; credit Cash $420,000.
C. Debit Bond Interest Expense $18,800; credit Cash $18,800.
D. Debit Bond Interest Expense $37,600; credit Cash $37,600.
E. No entry is needed, since no interest is paid until the bond is due.
Answer: C
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A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
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