Martin Corporation Sells $300,000,10%,10-Year Bonds at Face Value on January $$\begin{array} {| l l | l| } \hline \text { Cash } && 300,000 \\\hline & \text { Bonds Payable } & 300,000 \\\hline\end{array}$$

question 4

Multiple Choice

Martin Corporation sells $300,000,10%,10-year bonds at face value on January 1.Interest is paid on January 1 and July 1.The entry to record the issuance of the bonds on January 1 is:

• A)
• \[\begin{array} {| l l | l| }
• \hline \text { Cash } && 300,000 \\
• \hline & \text { Bonds Payable } & 300,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | r | r | }
• \hline \text { Cash } & 300,000 \\
• \hline \text { Interest Payable } & 30,000 \\
• \hline \text { Bonds Payable } & 270,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { |l | l |}
• \hline\text { Cash } & 270,000 \\
• \hline \text { Interest Expense } & 30,000 \\
• \hline \text { Bonds Payable } & 300,000\\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | l | }
• \hline \text { Bonds Payable } & 270,000 \\
• \hline \text { Interest Expense } & 30,000 \\
• \hline \text { Bonds Payable } &300,000 \\
• \hline
• \end{array}\]

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Definitions:

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.

Construct

A construct is an abstract idea or concept constructed by combining different elements of knowledge, often used in various fields such as psychology and sociology.