There is a loss on redemption of bonds when bonds are redeemed above carrying value
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The ____________________ method results in the best approximation of replacement cost of goods sold on the income statement during periods of rising prices
Fill in the blank(s) with correct word
Reduce-focus pricing is most likely to occur in the ________ stage of the product life cycle
A) early B) growth C) mature D) extinction E) decline
Choosing strong words, creating effective sentences and developing coherent paragraphs take place during what part of the writing process?
A) Drafting B) Proofreading C) Planning D) Completing E) Writing
On January 1, a company issues bonds dated January 1 with a par value of $240,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $249,262. The journal entry to record the issuance of the bond is:
A. Debit Cash $249,262; credit Bonds Payable $249,262. B. Debit Bonds Payable $240,000; debit Bond Interest Expense $9262; credit Cash $249,262. C. Debit Cash $249,262; credit Premium on Bonds Payable $9262; credit Bonds Payable $240,000. D. Debit Cash $249,262; credit Discount on Bonds Payable $9262; credit Bonds Payable $240,000. E. Debit Cash $240,000; debit Premium on Bonds Payable $9262; credit Bonds Payable $249,262.