The Journal Entry to Record the Issue of Bonds at a Discount

question 110

Multiple Choice

The journal entry to record the issue of bonds at a discount will include a

• A)debit to Cash for the face amount of the bonds.
• B)debit to Cash for the face amount of the bonds plus the amount of the discount.
• C)debit to Cash for the face amount of the bonds minus the amount of the discount.
• D)credit to Cash for the face amount of the bonds.
• Use the information below to answer questions 111-113.
• Sail and Sink Inc.issues $425,000 of 6%, 5-year bonds for cash proceeds of $390,529.The market interest rate is 8%.Interest is paid semi-annually.

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Definitions:

First Elected Assembly

Refers to the "House of Burgesses," the first assembly of elected representatives of English colonists in North America, established in Virginia in 1619.

Colonial America

The period of history when the European powers (primarily Britain, Spain, and France) established colonies on the American continent, from the late 15th century to the early 18th century.

Colony

A territory under the immediate political control of a state, distinct from the home territory of the sovereign.

Native American Leader

An individual from among the Indigenous peoples of the Americas who holds or has held a position of authority and influence within their community or tribe, often involved in political, spiritual, or military roles.