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

question 91

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 90-91.
• Coldwater Inc.issues $575,000 of 4%, 8-year bonds for cash proceeds of $502,774.The market interest rate is 6%.Interest is paid semi-annually.

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Definitions:

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The violation or non-fulfillment of a legal obligation, contract, or duty.

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The ethical obligation of professionals to not disclose information about clients to third parties without the client's consent.

Duty of Competence

A legal obligation requiring lawyers to possess the necessary skill, knowledge, and ability to represent a client effectively.

Client Confidentiality

The ethical and legal duty of professionals, especially in legal and medical fields, to keep information about their clients strictly private.