A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in cash proceeds. Prepare the issuer's journal entry to record the issuance of the bond.
What will be an ideal response?
| Cash | 484,087 |
| Discount on Bonds Payable | 15,913 |
| Bonds Payable | 500,000 |
You might also like to view...
Which of the following statements is false regarding cost drivers?
A) A particular cost driver may be used for more than one activity. B) If employees know the cost driver(s) for their department, it may motivate them to be more efficient. C) The selection of a cost driver should be based on the correlation it has with direct materials used in the production process. D) The best cost driver for a particular activity may be different from one company to the next.
__________ refers to a clearly defined line of authority in the organization that includes all employees.
A. The scalar principle B. Unity of command C. Work specialization D. Division of labor E. Span of management
Use Table 12-2 from your text to calculate the present value of the ordinary annuity, rounding to the nearest cent. Annuity Payment Time Nominal Present Value Payments Frequency Period Rate of the Annuity $600 every month 3 years 18% __________
What will be an ideal response?
What is an interval estimate?