The Journal Entry to Record the Payment of Semiannual Interest

Multiple Choice

The journal entry to record the payment of semiannual interest on 9%, $90,000 bonds issued at par would be to:

A) debit Bond Interest Expense $4,050; credit Cash $4,050.
B) debit Bond Interest Expense $8,100; credit Cash $8,100.
C) debit Cash $2,025; credit Bond Interest Expense $2,025.
D) debit Bond Interest Expense $2,025; credit Cash $2,025.