On January 1, Sewell Corporation Issues $2,000,000, 5-Year, 12% Bonds

question 290

Multiple Choice

On January 1, Sewell Corporation issues $2,000,000, 5-year, 12% bonds at 96 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

• A) debit to Interest Expense, $120,000.
• B) debit to Interest Expense, $240,000.
• C) credit to Discount on Bonds Payable, $16,000.
• D) credit to Discount on Bonds Payable, $8,000.

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Definitions:

Heredity Factors

The genetic components passed down from parents to offspring, influencing traits and predisposition to certain conditions or behaviors.

Free Will

The concept that humans have the capacity to make choices that are not predetermined by past events, genetic makeup, or current environmental factors.

Natural Selection

A mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Functionalism

A perspective in psychology that emphasizes the purposes of behavior and mental processes and how they adapt to the environment.