A $100,000 5-Year 6% Bonds Bond Is Issued on January

question 43

Multiple Choice

A $100,000 5-year 6% bonds bond is issued on January 1,2012.The bond pays interest annually.The market rate is 7%.What is the selling price of the bonds,rounded to nearest dollar?

• A)$4,500
• B)$95,500
• C)$100,000
• D)$104,213

---

Definitions:

T Accounts

T accounts are a visual representation of individual accounts used in accounting to depict debits and credits for transaction entries.

Adjusting Entries

Ledger postings concluded during the final phase of an accounting cycle to assign income and costs to their respective periods of occurrence.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Adjusted Trial Balance

A compilation of all accounts along with their balances, post-adjustment entries, employed during the creation of financial reports.