Oasis Company Received $391,800 for Bonds Having a Total Face

question 75

Multiple Choice

Oasis Company received $391,800 for bonds having a total face value of $400,000. What journal entry would be made to record this bond issuance?

• A)Debit Cash for $391,800,debit Discount on Bonds Payable for $8,200,and credit Bonds Payable for $400,000
• B)Debit Cash for $400,000,credit Discount on Bonds Payable for $8,200,and credit Bonds Payable for $391,800
• C)Debit Cash for $400,000 and credit Bonds Payable for $400,000
• D)Debit Cash for $400,000,credit Bonds Payable for $391,800,and credit Interest Payable for $8,200

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Definitions:

Supply Curve

Represents the relationship between the price of a good and the quantity of the good that producers are willing to supply, usually depicted as upward sloping on a graph.

Hamburgers

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bread bun.

Equilibrium

A condition where the supply and demand in the market are equal, leading to stable prices.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.