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Jones Corporation issued $500,000 of 5%, 10-year bonds payable at a price of 92. The...

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Accounting

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Jones Corporation issued $500,000 of 5%, 10-year bonds payable at a price of 92. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is O A. Accounts and Explanation Credit Date Debit Interest Expense 13,800 Discount on Bonds Payable 1,300 Cash 12,500 . Accounts and Explanation Date Debit Credit Interest Expense 14,500 Discount on Bonds Payable 2,000 Cash 12,500 C. Accounts and Explanation Date Credit Debit Interest Expense 16,300 Discount on Bonds Payable 1,300 Cash 15,000 D. Accounts and Explanation Date Debit Credit Interest Expense 17,000 2.000 Discount on Bonds Pavable

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