Use the Present Value and Future Value Tables Included in Appendix

question 39

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 bond issuance would include a

• A) Debit to Cash of $1,000,000
• B) Credit to Cash of $1,000,000
• C) Debit to Bonds Payable of $1,000,000
• D) Credit to Bond Interest Expense of $1,000,000

---

Definitions:

Bid

An offer of a specific price for goods or services, especially in the context of auctions or competitive bidding processes.

Market Maker

An entity that buys and sells securities from their own inventory to maintain liquidity and facilitate trading in financial markets.

Widgets

A generic term often used to refer to any product or manufactured good.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded at the market equilibrium price.