On the Date of Issue, Chudzick Corporation Sells $5 Million

question 214

Multiple Choice

On the date of issue, Chudzick Corporation sells $5 million of 5-year bonds at 97. The entry to record the sale will include the following debits and credits: Bonds Payable Discount on Bonds Payable

• A) $4,850,000 Cr. $0 Dr.
• B) $5,000,000 Cr. $150,000 Dr.
• C) $5,000,000 Cr. $1,250,000 Dr.
• D) $5,000,000 Cr. $15,000 Dr.

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Definitions:

Financial Report

A formal record of the financial activities and condition of a business, person, or other entity, usually in the form of balance sheets, income statements, and cash flow statements.

Leisure Time

Free time available for hobbies and activities outside of work or other obligatory activities.

Occasion Time

A specific moment or period designated for an event or activity, influencing consumer purchasing behavior.

Flow Time

The concept of being fully immersed and engaged in an activity, often leading to a sense of enjoyment and loss of time awareness.