A Ten-Year Bond Issue of $400,000, Interest Rate of 9

question 40

Multiple Choice

A ten-year bond issue of $400,000, interest rate of 9% paid semiannually, is sold for $440,000 when the market rate is 8%. The bonds were not sold between interest dates and the straight-line amortization method is used. The entry to record the first interest payment would include

• A) a debit to Cash of $18,000.
• B) a debit to Bond Interest Payable of $18,000.
• C) a debit to Premium on Bonds Payable of $2,000.
• D) a credit to Bond Interest Expense of $16,000.

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Definitions:

Personal Sense

An individual's conscious perception and understanding of their own identity, personality, and uniqueness.

Father's Absence

The lack of a father figure in an individual's life, which can impact various aspects of development and psychological health.

Sexual Activity

Behaviors related to seeking or experiencing sexual pleasure, including intercourse and other acts.

Erotic Plasticity

The degree to which one's sex drive or sexual interests can be shaped by cultural, social, or situational factors.