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

question 142

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%.Assume Blanding uses the straight-line method for amortization.What net balance will be reported for the bonds on the balance sheet on August 31,2014?

• A) $981,000
• B) $1,000,000
• C) $979,000
• D) $980,000

Acknowledge the importance of balancing personal and professional life in the helping field.

Understand the educational pathways and specializations available in the helping professions.

Understand the concept of trust as a psychological state in organizational behavior.

Recognize work/life balance initiatives and their effectiveness in minimizing work-related stress.

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Definitions:

Issuance Price

The price at which a company's shares are offered for sale to the public for the first time in an initial public offering (IPO) or the sale price in subsequent offerings.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings of a company.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.

Bond Retirement

The process of paying off bond issuance at maturity or through an early buyback, removing the bonds from circulation.