The Amazing Widget Company Issues $500 000 of 6%, 10-

question 93

Multiple Choice

The Amazing Widget Company issues $500 000 of 6%, 10- year debentures at 103 on 31 March 2014. The debenture pays interest on 31 March and 30 September. The market rate of interest on the issue date was 4%. Assume the company uses the straight- line method for amortisation. The journal entry to record the issue would include a:

• A)credit to Debentures payable for $515 000.
• B)credit to Discount on debentures payable for $15 000.
• C)debit to Cash for $500 000.
• D)debit to Cash for $515 000.

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Definitions:

Rating Error

Mistakes or biases that can occur during the evaluation of employee performance, affecting the fairness and accuracy of appraisals.

Administrative Reason

A justification or cause related to management or procedural issues within an organization.

Merit Pay

A salary increase awarded to employees based on their job performance, used as a tool for motivation and encouragement of high performance.

Performance Appraisals

A systematic evaluation of an employee's performance in their job roles over a specific period.