On 6/30/12, a company recorded a journal entry for the coupon payment on its bond. As part of the journal entry, the company debited bonds payable. Which of the following is true regarding this journal entry? (check all that apply)
The full journal entry is: Dr. Interest Expense; Dr. Bonds Payable; Cr. Cash. The debit to bonds payable indicates that the bond was issued at a premium, which means the proceeds of the bond were greater than the face value and that the coupon rate is greater than the effective rate.
The full journal entry is: Dr. Interest Expense; Dr. Bonds Payable; Cr. Cash. The debit to bonds payable indicates that the bond was issued at a premium, which means the proceeds of the bond were greater than the face value and that the coupon rate is greater than the effective rate.
The full journal entry is: Dr. Interest Expense; Dr. Bonds Payable; Cr. Cash. The debit to bonds payable indicates that the bond was issued at a premium, which means the proceeds of the bond were greater than the face value and that the coupon rate is greater than the effective rate.
The proceeds of the bond were less than the face value
