The Journal Entry to Record the Issue of Bonds at a Discount

question 75

Multiple Choice

The journal entry to record the issue of bonds at a discount will include a

• A) debit to Cash for the face amount of the bonds.
• B) debit to Cash for the face amount of the bonds plus the amount of the discount.
• C) debit to Cash for the face amount of the bonds minus the amount of the discount.
• D) credit to Cash for the face amount of the bonds.
• Use the information below to answer questions 89-90.
• Coldwater Inc. issues $575,000 of 4%, 8-year bonds for cash proceeds of $502,774. The market interest rate is 6%. Interest is paid semi-annually.

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Definitions:

Annelids

A phylum of segmented worms that includes earthworms and leeches, characterized by their segmented bodies and presence in diverse habitats.

Nitrogenous Waste

Waste products containing nitrogen, such as ammonia, urea, and uric acid, produced by the metabolism of proteins and nucleic acids.

Desert-Living Animals

Animals that have adapted to survive in desert environments, characterized by extreme temperatures and scarce water.

Uric Acid

A waste product formed from the breakdown of purines, excreted in urine, high levels of which can lead to gout and kidney stones.