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:

Capital Contribution

Funds or assets provided by owners or shareholders to support a company's operations or finance its activities.

Financial Information

Financial information encompasses all data relating to the financial status or performance of an individual or organization, including income, expenses, assets, and liabilities.

Encumbering Interests

Legal claims or liens against property that can affect the ability to transfer ownership freely.

Making Loans

The act of providing funds to an individual or organization with the expectation that the funds will be repaid, often with interest, over a specified period.