On January 1, A company issues $100,000 of 4.5% bonds, which mature in 10 years. The bonds pay interest semiannually on each June 30 and December 31. What journal entry should be made on June 30, 2015 when the interest is paid?
Debit Bond Interest Expense $2,250; Credit Cash $2,250.
Debit Bond Interest Expense $4,500; Credit Cash $4,500
Debit Bond Interest Expense $2,250; Credit Bond Interest Payable $2,250
Debit Bond Interest Expense $4,500; Credit Bond Interest Payable $4,500
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