Blanding Company Issues $1,000,000 of 8%,10-Year Bonds at 98 on February

question 40

Multiple Choice

Blanding Company issues $1,000,000 of 8%,10-year bonds at 98 on February 28,2014.The bond pays interest on February 28 and August 31.The market rate of interest on the issuance date was 10%.The journal entry to record the issuance would include a:

• A) debit to Cash for $1,000,000.
• B) credit to Bonds payable for $980,000.
• C) credit to Discount on bonds payable for $20,000.
• D) debit to Cash for $980,000.

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Definitions:

Divide and Conquer

An algorithm strategy that breaks a problem into smaller parts, solves each part individually, and then combines the solutions.

Recursive Method

A method in programming that calls itself in order to solve a problem by breaking it down into smaller sub-problems.

Return a Value

In programming, the process of sending a value back to the calling function as the result of a function call.