The Amazing Widget Company Issues $500,000 of 6%,10-Year Bonds at 103

question 28

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2014.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.Assume the company uses the straight-line method for amortization.What net balance will be reported for the bonds on the balance sheet on September 30,2014?

• A) $500,000.
• B) $515,000.
• C) $514.250.
• D) $515,250.

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Definitions:

George Ritzer

An American sociologist known for his work on consumer culture, globalization, and the concept of McDonaldization.

"Nonplaces"

Refers to spaces created for transitory purposes, such as airports and supermarkets, lacking significant identity or social interactions.

Grobalization

A term coined to describe the process of cultures or businesses absorbing influences from others and becoming more similar globally, often driven by capitalist markets.

Globalization

The process by which businesses, cultures, and societies become more interconnected and interdependent through trade, technology, and cultural exchange.