A Company Sells a Bond with a Face Value of $10,000

question 83

Multiple Choice

A company sells a bond with a face value of $10,000 and receives a premium of $800.Using the Simplified Approach (Effective-interest Method) ,the company would make the following journal entry:

• A)Debit Cash for $10,800 and credit Bonds Payable,Net for $10,800.
• B)Debit Cash for $10,800,credit Bonds Payable,net for $10,000,and credit Premium on Bond Payable for $800.
• C)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable,net for $10,000,and credit Premium on Bonds Payable for $800.
• D)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable for $10,000 and credit Premium on Bonds Payable for $800.

Recognize the differences between voluntary and involuntary property transfers, including assignments, subleases, and easements.

Understand legal strategies for dispute resolution and management in property law, including partitioning and rights of survivorship.

Understand the distinction between problem-focused and emotion-focused coping strategies.

Recognize the physical and psychological benefits of employing active coping strategies.

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Definitions:

Volume Variance

A measure used in costing to indicate the difference between expected production volumes and the actual volumes produced, affecting costs.

Fixed Factory Overhead

Indirect, consistent costs associated with operating a manufacturing facility, such as salaries of supervisors and rent.

Normal Standards

The expected performance or cost levels under normal operating conditions, used for budgeting or measuring efficiency.

Ideal Standards

Benchmark or optimal performance levels set in managerial accounting to evaluate operational efficiency, without considering any business constraints.