A Ten-Year Bond Has a Face Value of $10,000,a Face

Multiple Choice

A ten-year bond has a face value of $10,000,a face interest rate of 11 percent,an unamortized bond premium of $400,and an effective interest rate of 10 percent.The bonds were issued on one of the semi-annual interest payment dates.The entry to record the bond interest expense on the first semi-annual interest payment date is: (assuming the effective interest method of amortization) ,

A) Bond Interest Expense 520
Unamortized Bond Premium 30
Cash 550
B) Bond Interest Expense 520
Cash 520
C) Bond Interest Expense 550
Cash 550
D) Unamortized Bond Premium 520
Cash 520