On 1 January 2014, Davie Services Issued $20 000 of 8

question 48

Multiple Choice

On 1 January 2014, Davie Services issued $20 000 of 8% debentures that mature in five years. They were sold at discount, for a total of $19 000. On 1 January 2019, when the debentures mature, Davie Services will make the final principal payment. That entry will be which of the following?

• A)Debit Debenture discount for $1 000 and credit Cash for $1 000.
• B)Debit Debentures payable for $19 000, debit Debenture discount for $1 000 and credit Cash for $19 000.
• C)Debit Debentures payable for $19 000 and credit Cash for $1 000.
• D)Debit Debentures payable for $20 000 and credit Cash for $20 000.

---

Definitions:

Entertainment Futures

Futures contracts based on the box office performance of movies or other entertainment events, allowing investors to speculate on their financial success.

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future, often used for hedging or speculation.

Short Position

The investment strategy of selling borrowed securities or assets with the expectation that their prices will decline, allowing them to be bought back at a lower price for a profit.