On January 1,ABC,Inc

question 212

Multiple Choice

On January 1,ABC,Inc.,issued $100,000 of 10%,5year bonds on January 1,2015,for $92,280.Interest is due semiannually.When ABC records the first interest payment,which will be greater the debit to Interest Expense or the credit to Cash?

• A) The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.
• B) The debit to Interest Expense will be less because the market rate is greater than the stated interest rate.
• C) The debit to Interest Expense will be greater because the market rate is less than the stated interest rate.
• D) The debit to Interest Expense will be lower because the market rate is less than the stated interest rate.

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Definitions:

Serratus Anterior

A muscle located on the side of the chest that assists in the movement of the shoulder blade (scapula), essential for activities like lifting arms and breathing.

Coracobrachialis

A muscle in the shoulder that helps in flexing and adducting the arm at the shoulder joint.

Pectoralis Major

A large muscle in the upper chest that contributes to arm movements such as flexion, adduction, and internal rotation, playing a key role in the shoulder's strength and stability.

Deltoid

A big, triangular-shaped muscle that wraps around the shoulder joint, crucial for elevating the arm and enabling the shoulder's movement range.