Bonds Are Issued for $80,000 at 12% Face Value on September

question 46

Multiple Choice

Bonds are issued for $80,000 at 12% face value on September 1.The stated interest is 12% and interest is paid on September 1 and March 1.What is the adjusting entry on December 31?

• A)
• \[\begin{array} { | c | c | }
• \hline \text { Bond Interest Expense } & 3200 \\
• \hline \text { Bond Interest Payable } & 3200 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | c | c | }
• \hline \text { Bond Interest Expense } & 2400 \\
• \hline \text { Bond Interest Payable } & 2400 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | }
• \hline \text { Bond Interest Expense } & 1600 \\
• \hline \text { Bond Interest Payable } & 1600 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | c | }
• \hline \text { Bond Interest Payable } & 9600 \\
• \hline \text { Bond Interest Expense } & 9600 \\
• \hline
• \end{array}\]

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Definitions:

Closing Statement

The final remarks in a document or speech that sum up the arguments or points made, often used in legal proceedings and presentations.

Incentives

Rewards or benefits offered to participants or individuals to motivate desired actions or behaviors.

Snowball Sampling Technique

Snowball sampling technique is a non-probability sampling method used in research where existing study subjects recruit future subjects from among their acquaintances, expanding the sample like a rolling snowball.

Referral Sampling Technique

A sampling method where existing study subjects recruit future subjects from among their acquaintances, often used in qualitative research.