McDonald Sales Prepared a Debenture Issue of $20 000 Dated

question 61

Multiple Choice

McDonald Sales prepared a debenture issue of $20 000 dated 1 January 2013. The debentures have a stated rate of 3% and a term of 6 years. The debenture issue was delayed, and the debentures were finally sold on 1 March 2013 at par. On 30 June 2013, the first half- yearly interest payment is made. The journal entry to record that interest payment will include which of the following line items?

• A)Credit Interest payable for $100
• B)Debit Interest expense for $200
• C)Credit Cash for $200
• D)Debit Cash for $300

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Definitions:

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders, going beyond profit-making.

Legitimate Power

Authority that is recognized and accepted due to one's official or formal position within an organization.

Compliance

The act of conforming to or following rules, guidelines, or standards.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.