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

question 57

Multiple Choice

On 1 January 2014, Davie Services issued $20 000 of 8% debentures that mature in five years. They were sold at a premium, for a total of $20 750. On 1 January 2019, when the debentures mature, Davie Services will make the final principal payment. That entry will include which of the following?

• A)Debit Debentures payable for $20 000 and credit Cash for $20 000.
• B)Debit Debenture premium for $250 and credit Cash for $250.
• C)Debit Debentures payable for $20 000, credit Debenture premium for $750 and Credit Cash for $19 250.
• D)Debit Debentures payable for $20 750 and credit Cash for $20 750.

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Definitions:

Moral Development

The process by which individuals grow in their understanding of morals and ethics, often through stages that reflect their capacity for moral reasoning.

Conventional

Adhering to traditional standards or norms; typical or expected within a certain context.

Ethical Dilemma

A situation in which a difficult choice has to be made between two or more actions, where none of the options resolve the ethical principles or standards at stake fully.

Kohlberg's Moral Development Theory

A theory that proposes individuals progress through different stages of moral reasoning, from basic obedience to societal rules to higher-level ethical principles.