Multiple Choice
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the issuance of the bond is:
A) Debit Cash $312,177; credit Discount on Bonds Payable $12,177; credit Bonds Payable $300,000.
B) Debit Cash $300,000; debit Premium on Bonds Payable $12,177; credit Bonds Payable $312,177.
C) Debit Bonds Payable $300,000; debit Interest Expense $12,177; credit Cash $312,177.
D) Debit Cash $312,177; credit Premium on Bonds Payable $12,177; credit Bonds Payable $300,000.
E) Debit Cash $312,177; credit Bonds Payable $312,177.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: An annuity is a series of equal
Q59: A company issued 10%, 10-year bonds with
Q60: Which of the following statements is ?<br>A)
Q61: Mortgage contracts grant the lender the right
Q62: On October 1, a $30,000, 6%, 3-year
Q63: A company borrowed $50,000 cash from the
Q66: On January 1, a company issues bonds
Q67: A company purchased equipment and signed a
Q69: Callable bonds can be exchanged for a
Q102: The legal document identifying the rights and