Five Thousand Bonds with a Face Value of $1000 Each

question 217

Multiple Choice

Five thousand bonds with a face value of $1000 each are sold at 102.Recording the issuance includes a(n)

• A)Increase to Cash and an increase to Bonds Payable for $5100000.
• B)Increase to Cash for $5000000 a decrease to Premium on Bonds Payable for $100000 and an increase to Bonds Payable for $5100000.
• C)Increase to Cash for $5100000 and an increases to Premium on Bonds Payable for $100000 and to Bonds Payable for $5000000.
• D)Increase to Cash for $5100000 a decrease to Discount on Bonds Payable for $100000 and an increase to Bonds Payable for $5000000.

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Definitions:

Spongy Bone

A porous type of bone tissue found at the ends of bones and within the vertebral bones, characterized by a honeycomb-like structure.

Compact Bone

The dense, hard outer layer of bones that provides strength, structure, and resistance to the body.

Bony Plates

Bony plates are rigid structures of dense bone forming the protective external layer or armor on certain animals, such as stegosaurs and armadillos.

Lacunae

Small spaces within bone or cartilage tissue that house cells such as osteocytes in bone or chondrocytes in cartilage.