Use the Present Value and Future Value Tables Included in Appendix

question 16

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-On January 1, 2012, Lawton Corporation issued 10-year, $1,000,000 bonds with a stated interest rate of 10%. The effective interest rate is 10% and interest is paid semi-annually on January 1 and July 1. The journal entry to record the first semi-annual interest payment on July 1, 2012 would include a

• A) Debit to Cash of $50,000
• B) Credit to Bonds Payable of $50,000
• C) Debit to Bonds Interest Expense of $50,000
• D) Credit to Bonds Interest Expense of $50,000

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Definitions:

Ethical Dilemma

A situation in which a person must choose between two or more conflicting moral principles, making the correct choice inherently difficult.

Universal Law

A principle or rule that is thought to be applicable everywhere and always, governing conduct or phenomena.

Rational Creatures

Beings capable of reasoning, making informed decisions, and understanding the implications of their actions, often applied in philosophical contexts to distinguish humans from other animals.

Maxim

A brief, concise saying that conveys a universal principle or ethical guideline.