The Following Information Applies to Both Questions

question 20

Multiple Choice

The following information applies to both questions
On October 1, 2010 Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at 108 (a 4% yield) .Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis.
-The entry to record the issuance of the bonds would include a

• A)credit of $12,500 to interest Payable.
• B)credit of $540,000 to Bonds Payable.
• C)credit of $500,000 to Bonds Payable.
• D)debit of $40,000 to Bonds Payable.

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Definitions:

Business Owners

Individuals who own and often operate a business, assuming the financial risks and responsibilities associated with their venture.

Income Uncertainty

Refers to the unpredictability in the amount of money earned from one's job or investment, leading to financial instability.

New Business

An enterprise recently established to provide goods or services to a market.

Successful Entrepreneur

An individual who has effectively identified a market opportunity and organized the resources necessary to capitalize on it, resulting in a profitable and sustainable business venture.