The Journal Entry to Record the Issuing of 100 Bonds

question 87

Multiple Choice

The journal entry to record the issuing of 100 bonds at their $1,000 face value will include a debit to ________ and a credit to ________.

• A)Cash;Bonds Payable
• B)Notes Payable;Cash
• C)Cash;Bonds Receivable
• D)Bonds Payable;Cash

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Definitions:

Fixed Costs

Expenses that do not change in total irrespective of the volume of goods or services produced by a company.

Break Even

The point at which total revenues equal total expenses, with no net loss or profit.

Variable Costs

Expenses that are directly tied to the rate of goods produced or services sold, such as the cost of materials and labor involved.

Fixed Costs

Costs that remain constant for a business over a period, regardless of the level of goods or services produced.