Molina Corporation Issues 4,000, 10-Year, 8%, $1,000 Bonds Dated January

question 291

Multiple Choice

Molina Corporation issues 4,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 103. The journal entry to record the issuance will show a

• A) debit to Cash of $4,000,000.
• B) debit to Premium on Bonds Payable for $120,000.
• C) credit to Bonds Payable for $4,000,000.
• D) credit to Cash for $4,120,000.

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Definitions:

Functional Area

Specific sectors within a business or organization dedicated to particular tasks or operations, such as marketing, finance, or human resources.

Consumer Protectionism

Policies and measures designed to protect the rights and welfare of consumers by ensuring fair trade and accurate information in the marketplace.

Government Entities

Organizations or agencies that are part of the state or federal government and are responsible for administering specific functions.

Consumers

Individuals or groups that purchase or have the potential to purchase goods and services for personal use.