Osbourne Oasis, Inc. is running short on cash. Osbourne decides to sell bonds to help with the cash problem. On January 1, 2022 Osbourne sells $1,000,000, 3-year bonds with a coupon rate of 3% payable annually. The market rate of interest was 4%. What would the journal entry be to record the first payment of interest on 12/31/22? Dr. Interest Expense $38,890, Cr. Bonds Payable $8,890, Cr. Cash $30,000 O Dr. Interest Expense $30000, Dr. Bonds Payable $8,890. Cr. Cash $38,890 O Dr. Interest Expense $30,000, Cr. Cash $30,000

Osbourne Oasis, Inc. is running short on cash. Osbourne decides to sell bonds to help with the cash problem. On January 1, 2022 Osbourne sells $1,000,000, 3-year bonds with a coupon rate of 3% payable annually. The market rate of interest was 4%. What would the journal entry be to record the first payment of interest on 12/31/22? Dr. Interest Expense $38,890, Cr. Bonds Payable $8,890, Cr. Cash $30,000 O Dr. Interest Expense $30000, Dr. Bonds Payable $8,890. Cr. Cash $38,890 O Dr. Interest Expense $30,000, Cr. Cash $30,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

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