Answer :
'Mission furniture issued $500,000 in bonds payable at par. The journal entry to record a semiannual interest payment on these bonds would debit Interest Expenses and credit Cash.
Interest is the cost of borrowing money. This is the price the lender charges the borrower for using the lender's money. In the income statement, interest expense can represent the cost of borrowing from banks, bond investors, and other sources of funds.
Interest expense is the cost of funds borrowed by a company. Interest expense is a non-operating expense recognized in the income statement. It represents interest paid on borrowings such as bonds, loans, convertible bonds, or lines of credit.
Interest expense is borrowing cost. It is recognized as a non-operating expense in the income statement and is derived from loan contracts such as lines of credit, loans, and bonds. Interest expense is typically tax deductible, making debt a more cost-effective way of financing than equity.
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