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.
Answer: C
You might also like to view...
The flow of information from OE/S to the credit department is an example of vertical information flows
Indicate whether the statement is true or false
________ consist of items that are only in demand for a relatively short period of time.
A. Sample merchandise categories B. Staple merchandise categories C. Fashion merchandise categories D. General merchandise categories E. Expected merchandise categories
The four key elements of the definition of leadership used in the text are ______.
A. trait, goal, emergent, expert B. process, influence, group, goal C. values, ethics, process, performance D. capability, competency, skill, relationship
If a variable explains a significant proportion of the residual variation, it should be considered for inclusion in the regression equation
Indicate whether the statement is true or false