The Kaplan group sold $200,000 of 10 year bonds for $190,000. The rate on the face of the bonds was 8% and interest is payable annually on December 1st. What entry would be made on December 1st when the interest is paid?
A) Debit interest expense and scout on bonds payable; credit cash
B) Debit interest expense; credit cash and discount on bonds payable
C) Debit interest expense; credit bonds payable and cash
D) Debit interest expense; credit cash
Answer: B
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