Four Thousand Bonds with a Face Value of $1,000 Each

question 15

Multiple Choice

Four thousand bonds with a face value of $1,000 each, are sold at 105. The entry to record the issuance is

• A) Cash 4,200,000 Bonds Payable 4,200,000
• B) Cash 4,000,000 Premium on Bonds Payable 200,000
• Bonds Payable 4,200,000
• C) Cash 4,200,000 Premium on Bonds Payable 200,000
• Bonds Payable 4,000,000
• D) Cash 4,200,000 Discount on Bonds Payable 200,000
• Bonds Payable 4,000,000

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Definitions:

Standard Normal Random Variable

A normally distributed random variable characterized by a mean of 0 and a standard deviation of 1.

P

A probability value that reflects the likelihood of obtaining test results at least as extreme as the results actually observed, during the assumption that the null hypothesis is correct.

z

A statistical measure that represents the number of standard deviations a data point is from the mean.

Normally Distributed Random Variable

A variable that follows a Gaussian distribution, characterized by its bell-shaped curve, where the mean, median, and mode are all equal.