Blanding Company Issues $1,174,000 of 12%,10-Year Debentures at 99 on 28

question 45

Multiple Choice

Blanding Company issues $1,174,000 of 12%,10-year debentures at 99 on 28 February 2017.The debentures pay interest on 28 February and 31 August.Assume that Blanding uses the straight-line method for amortisation.What is the journal entry to record the first interest payment on 31 August 2017? (Round to the nearest dollar. )

• A)debit to Discount on debentures payable for $587
• B)debit to Cash for $70,440
• C)debit to Interest expense for $71,027
• D)debit to Interest expense for $69,853

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Definitions:

Geometric Isomers

Molecules with the same molecular formula and sequence of bonded atoms (constitution), but differing in the three-dimensional orientations of their atoms in space.

(E)-2-pentene

An alkene with the formula CH3CH=CHCH2CH3 where the two substituents on the double bond are on opposite sides, denoted by the (E) configuration.

(Z)-2-pentene

An alkene with the chemical formula C5H10, where the double bond between carbons 2 and 3 has the highest priority substituents on the same side, following the Cahn-Ingold-Prelog priority rules.

Stereoisomers

Compounds sharing identical molecular formulas and sequences of bonded atoms, yet varying in the spatial arrangement of their atoms.