A Company Receives $102,000 When It Issues a Bond with a Face

question 259

Multiple Choice

A company receives $102,000 when it issues a bond with a face value of $100,000 and a stated interest rate of 7%.Which of the following statements is correct?

• A)The entry to record the issuance will include a credit to Bonds Payable for $102,000.
• B)The market interest rate is 7%.
• C)The annual interest expense is $7,000.
• D)The carrying value of the bonds will be $100,000 at maturity.

---

Definitions:

Command

An instruction or directive given to a computer or software to perform a specific task or operation.

Picture Color Options

Picture color options refer to the adjustments and filters that can be applied to change the color properties of an image in a software application.

Stacked Objects

Multiple objects placed directly on top of one another, often referring to graphic design or 3D modeling contexts.

Title Slide

The introductory slide in a presentation that typically includes the presentation title, presenter name, and other relevant information.