Celera Inc Received Proceeds of $164,992 on a Bond Issue

question 139

Multiple Choice

Celera Inc received proceeds of $164,992 on a bond issue with a par value of $200,000.The difference between par value and issue price is recorded as a

• A)Credit to Interest Income
• B)Credit to Premium on Bonds Payable
• C)Credit to Discount on Bonds Payable
• D)Debit to Premium on Bonds Payable
• E)Debit to Discount on Bonds Payable

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Definitions:

Sales Dollars

This term represents the total revenue generated from the sales of goods or services, expressed in currency units.

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.

Break-even

The point at which total revenue equals total costs, resulting in no net loss or gain.

Selling Price

Selling Price is the amount of money charged for a product or service, determined by considering factors such as cost of production, market demand, and competition.