Plum Corporation issues $400,000 of 7 percent, five-year bonds on January 1, 20x5, when the market rate of interest is 8 percent. The bond indenture states that interest is to be paid on January 1 and July 1 of each year. The entry to record the issuance includes
A) a credit to Cash.
B) a debit to Bonds Payable.
C) a debit to Unamortized Bond Discount.
D) All of these choices.
C
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Which of the following objectives is FALSE concerning the conducting of secondary research?
a. It establishes a base for further research. b. It reveals areas of needed research. c. It often eliminates the need for primary research. d. It avoids needless duplication of research efforts.
Which of the following is the primary drawback of traditional strategic control systems?
A. They lack the flexibility needed to adjust to changes in the environment. B. Goals and objectives cannot be measured with a high level of certainty. C. They are only appropriate when the environment is stable and simple. D. They lead to complacency.
Financial leverage has to do with
A) the usage of fixed cost financial securities to finance a portion of a firm's assets. B) a high gross profit margin. C) the incurrence of fixed operating costs in the firm's income stream. D) using common stock to finance a portion of a firm's assets.
Many states now allow groups of doctors in practice together to form a particular legal entity allowed by statute called:
a. a limited liability company b. a cooperative c. a physician association d. a limited partnership e. none of the other choices