The interest expense recorded on an interest payment date is increased: a. Only if the market rate of interest is less than the stated rate of interest on that date only if the bonds were sold at face value. b. By the amortization of premium on bonds payable c. By the amortization of discount on bonds payabled. Only if the bonds were sold at face value

Question

Faith Saunders

Business

21 December, 12:45

The interest expense recorded on an interest payment date is increased: a. Only if the market rate of interest is less than the stated rate of interest on that date only if the bonds were sold at face value. b. By the amortization of premium on bonds payable c. By the amortization of discount on bonds payabled. Only if the bonds were sold at face value

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Vasquez · Answer 1

c. By the amortization of discount on bonds payabled

Explanation:

The interest expense recorded on an interest payment date is increased by the amortization of discount on bond payable as discount on bond payable is credited for amortization and interest expense is debited.