Multiple Choice
On February 1, Year 1, Centra issues $100,000 semi-annual 12% bonds at par plus accrued interest.The interest is payable on July 1 and January 1 of each year.What entry is necessary to record the issuance of the bonds on February 1?
A) Cash 100,000
Bonds Payable 100,000
B) Cash 101,000
Bonds Payable 101,000
C) Cash 100,000
Interest Payable 1,000
Bonds Payable 101,000
D) Cash 101,000
Bonds Payable 100,000
Interest Payable 1,000
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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