On August 1, 2008, Tyler Corporation Issues $3,000,000 of 10-

question 44

Multiple Choice

On August 1, 2008, Tyler Corporation issues $3,000,000 of 10- year bonds dated August 1, 2008, at 101 when the market rate of interest is 8%. Tyler Corporation uses the effective- interest method of amortization and interest is paid each January 31, and July 31. No accrual has been made. The entry to record the first semiannual interest payment on January 31, 2009, will include a:

• A)debit to Interest Expense for $121,200.
• B)credit to Interest Payable for $120,000.
• C)debit to Premium on Bonds Payable for $300,000.
• D)credit to Premium on Bonds Payable for $240,000.

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Definitions:

Systems Theory

An interdisciplinary study of systems in general, with the goal of elucidating principles that can be applied to all types of systems at all nested levels.

Empirically

Referring to knowledge or conclusions derived from observation, experimentation, or measurement rather than theory or pure logic.

Organizing

The act of arranging or structuring elements in a systematic way for efficiency and order.

Retrospective Sense Making

Weick’s view of how people construct rational accounts of organizational behavior after the fact—“how do I know what I think until I see what I say?”