The Adjusting Entry to Record the Amortization of a Discount

question 111

Multiple Choice

The adjusting entry to record the amortization of a discount on bonds payable is

• A) debit Discount on Bonds Payable, credit Interest Expense
• B) debit Interest Expense, credit Discount on Bonds Payable
• C) debit Interest Expense, credit Cash
• D) debit Bonds Payable, credit Interest Expense

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Definitions:

Osmolality

Osmotic concentration of a solution; the number of moles of solute in 1 kg of water times the number of particles into which the solute dissociates.

Osmoreceptors

Specialized cells in the body that detect changes in plasma osmolality and contribute to the regulation of body fluids.

Extracellular Fluid

The body fluid located outside the cells, which includes interstitial fluid, plasma, and transcellular fluid.

Aldosterone

A hormone produced by the adrenal glands that regulates sodium and potassium levels in the blood, thereby controlling blood pressure and the balance of fluids in the body.