On January 1,a Company Issues Bonds Dated January 1 with a Par

question 95

Multiple Choice

On January 1,a company issues bonds dated January 1 with a par value of $300,000.The bonds mature in 5 years.The contract rate is 9%,and interest is paid semiannually on June 30 and December 31.The market rate is 8% and the bonds are sold for $312,177.The journal entry to record the first interest payment using straight-line amortization is:

• A)Debit Interest Payable $13,500; credit Cash $13,500.00.
• B)Debit Interest Expense $12,282.30; debit Discount on Bonds Payable $1,217.70; credit Cash $13,500.00.
• C)Debit Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00.
• D)Debit Interest Expense $14,717.70; credit Discount on Bonds Payable $1,217.70; credit Cash $13,500.00.
• E)Debit Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Equity Financing

The method of raising capital through the sale of shares, offering investors ownership interests in the company.

Profit Margin

A financial metric that measures the percentage of profit a company retains after deducting its expenses from its total revenue.

Current Liabilities

Financial obligations a company owes and is due within a year.

Dividend Payout Ratio

The proportion of a company's earnings paid out to shareholders as dividends, often expressed as a percentage of net income.