On January 1,2012,Davie Services Issued $20,000 of 8% Bonds That

question 6

Multiple Choice

On January 1,2012,Davie Services issued $20,000 of 8% bonds that mature in five years.They were sold at a premium,for a total of $20,750.On January 1,2017,when the bonds mature,Davie Services will make the final principal payment.That entry will include which of the following?

• A) Debit Bond premium for $250 and credit Cash for $250.
• B) Debit Bonds payable for $20,750 and credit Cash for $20,750.
• C) Debit Bonds payable for $20,000 and credit Cash for $20,000.
• D) Debit Bonds payable for $20,000, credit Bond premium for $750 and Credit Cash for $19,250.

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Definitions:

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned collectively, and goods are distributed according to need.

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Functionalist Perspective

A sociological approach that emphasizes the functions of each component of society and how these components contribute to the stability and continuity of the society.

American Family

A social unit living together in the United States, characterized by varying structures including nuclear, single-parent, extended, and more, influenced by diverse cultural backgrounds.