The Amazing Widget Company Issues $538,000 of 7%,10-Year Bonds at 108

question 156

Multiple Choice

The Amazing Widget Company issues $538,000 of 7%,10-year bonds at 108 on March 31,2017.The bonds pay interest on March 31 and September 30.Assume that the company uses the straight-line method for amortization.The journal entry to record the issuance includes a ________.

• A)debit to Cash for $538,000
• B)credit to Bonds Payable for $581,040
• C)debit to Premium on Bonds Payable for $43,040
• D)debit to Cash for $581,040

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Definitions:

Sales Organization Structure

The way a business organizes its sales team, which can vary based on territories, products, markets, or a combination of these elements.

Different Needs

The varied requirements or desires of customers or markets, acknowledging that not all consumers seek the same features or benefits from products.

Business-To-Business Selling

This refers to the sales model where companies sell products or services to other companies rather than to individual consumers.

Pricing Practices

Various strategies and methodologies businesses adopt to set and adjust the prices of their products or services.