A Company Issued 8%,15-Year Bonds with a Par Value of $550,000.The

Multiple Choice

A company issued 8%,15-year bonds with a par value of $550,000.The current market rate is 8%.The journal entry to record each semiannual interest payment is:

A)
$\begin{array}{|c|r|r|}\hline\text { Bond Interest Expense } & 22,000 & \\\hline \text { Cash } & & 22,000\\\hline\end{array}$
B)
$$\begin{array} { | l | c | c | } \hline \text { Bond Interest Expense } & 44,000 & \\\hline \text { Cash } & & 44,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | c | c | } \hline \text { Bond Interest Expense } & 555,000 & \\\hline \text { Cash } & & 555,000 \\\hline\end{array}$$
D)
$$\begin{array} { | l| c | c | } \hline \text { Bond Interest Expense } & 660,000 & \\\hline \text { Bond Payable } & & 660,000 \\\hline\end{array}$$
E) No entry is needed,since no interest is paid until the bond is due