On the Maturity Date of Bonds Payable After Interest Has

question 97

Multiple Choice

On the maturity date of bonds payable after interest has been paid, the issuing company will do which of the following?

• A) Pay bondholders the original amount the bondholders paid to purchase the bonds.
• B) Debit Cash and credit Bonds Payable for the carrying amount of the bonds.
• C) Record a loss of the market rate of interest on the maturity date exceeds the stated rate of interest.
• D) Debit Bonds Payable and credit Cash for the par value of the bonds.