A Bond Issue of $500,000 Selling at 100, Would Require

question 54

Multiple Choice

A bond issue of $500,000 selling at 100, would require a journal entry including a

• A) credit to Cash of $500,000.
• B) credit to Premium on Bonds Payable for $500,000.
• C) credit to Bonds Payable of $500,000.
• D) debit to Bonds Payable of $500,000.

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Definitions:

Homogenous

Having a uniform structure or composition throughout; similar in kind or nature.

Collectivistic

Characterizing cultures or societies that emphasize group goals and interdependence over individual pursuits and achievements.

Individualistic

Characterized by independence and self-reliance, prioritizing personal goals over group goals.

Stable

A term describing something that is unchanging, firmly established, or not prone to fluctuations.