If Bonds with a Face Value of $20,000 Are Redeemed

question 103

Multiple Choice

If bonds with a face value of $20,000 are redeemed before maturity when the amortized cost of the bonds is $18,000, the entry to record the redemption will include a debit to

• A) Bonds Payable for $20,000.
• B) Bonds Payable for $18,000.
• C) Interest Payable for $2,000.
• D) Bonds Payable equal to the market price of the bonds on the date of conversion.

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Definitions:

95%

Refers to a confidence interval percentage commonly used in statistics to represent the range within which the true population parameter is expected to fall, with 95% certainty.

Coin

A flat, typically round piece of metal with an official stamp, used as money.

68%

In the context of a normal distribution, it refers to the percentage of data that falls within one standard deviation of the mean.

Germination Rate

The percentage of seeds that successfully sprout and begin to grow over a given period.