Bonds with a face amount $1,000,000, are sold at 98. The entry to record the issuance is
A) Cash 1,000,000 Premium on Bonds Payable 20,000Bonds Payable 980,000
B) Cash 980,000Premium on Bonds Payable 20,000Bonds Payable 1,000,000
C) Cash 980,000Discount on Bonds Payable 20,000Bonds Payable 1,000,000
D) Cash 980,000Bonds Payable 980,000
C
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The reasonable "doing of something about disputes" refers to:
a. the business of the private sector b. the need for regulations c. the leadership of management d. the structure of courts e. none of the other choices
Case-Based Critical Thinking QuestionsCase 12-3Candace is preparing materials for a class she is teaching on cell phone etiquette. This is the first time she has taught this subject, and her research is uncovering some interesting information.Candace concludes her presentation by reminding students to use common courtesy. This means that if you are talking with someone face-to-face, you ____.
A. should not accept cell phone calls B. should accept cell phone calls if you apologize quickly to the other person C. should accept cell phone calls if you like the person calling better than the person you are with D. should accept cell phone calls if you have not spoken to the person calling for more than two days
Lucy’s Music Emporium purchased $50 million in fixed assets in January and their accountant told them that they would have to depreciate the assets over 20 years (they use the same depreciation calculations for shareholder reporting and income tax purposes). In December they learned that their accountant did not have a college degree and fired him. They hired a new accountant with a college degree and she told them that they could depreciate the assets over 15 years. How would the new depreciation assumption affect the company's financial statements relative to the old assumption?
A. The firm's net liabilities would increase. B. The firm's reported net fixed assets would increase. C. The firm's EBIT would increase. D. The firm's reported earnings per share would increase. E. The firm's cash position would increase, all else held equal.
At his death Trevor had a probate estate consisting of $4 million of property. Which of the following is a true statement about Trevor's estate or estate tax?
A. Trevor must have a taxable estate of at least $4 million. B. Trevor must have an adjusted gross estate of at least $4 million. C. Trevor must have a gross estate of at least $4 million. D. Trevor must have an estate tax base (cumulative taxable transfers) of at least $4 million. E. None of the choices are necessarily true.