Knollwood Corporation issued $278,000 of 30-year, 8 percent bonds at 106 on one of its semi-annual interest dates. The straight-line method of amortization is to be used. The entry to record the bond interest expense on the next interest payment date is:

a. Bond Interest Expense 11,120
Cash 11,120

b. Bond Interest Expense 11,398
Cash 11,398

c. Bond Interest Expense 10,520
Cash 10,520

d. Bond Interest Expense 10,842
Unamortized Bond Premium 278
Cash 11,120


D

Business

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