On January 1 Wellness Corporation Issues $3000000 5-Year 12% Bonds

On January 1 Wellness Corporation issues $3000000 5-year 12% bonds at 95 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

A) debit to Interest Expense $180000.
B) debit to Interest Expense $360000.
C) credit to Discount on Bonds Payable $30000.
D) credit to Discount on Bonds Payable $15000.

Correct Answer:

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