Blanding Company Issues $1 000 000 of 8%, 10- Year

question 31

Multiple Choice

Blanding Company issues $1 000 000 of 8%, 10- year debentures at 98 on 28 February 2014. The debenture pays interest on 28 February and 31 August. The market rate of interest on the issue date was 10%. The journal entry to record the issue would include a:

• A)credit to Discount on debentures payable for $20 000.
• B)debit to Cash for $1 000 000.
• C)debit to Cash for $980 000.
• D)credit to Debentures payable for $980 000.

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Definitions:

MTBF Distribution

MTBF (Mean Time Between Failures) Distribution is a statistical representation of the expected performance or reliability of a system, indicating the average time between failures.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how spread out the values are from the mean.

6-Sigma Standards

A set of quality management techniques and tools aimed at reducing the probability of defects and variability in manufacturing and business processes to improve performance.

Tolerance-Check Process

A quality control procedure that verifies if manufactured parts meet predefined physical dimensions and specifications.