Wayne Company Issued Bonds with a Face Value of $600,000

question 8

Multiple Choice

Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Wayne uses the straight-line method of amortization. Interest is paid annually on December 31.Assuming Wayne issued the bonds for 102½, the carrying value of the bonds on the December 31, Year 1 balance sheet would be:

• A) $601,500.
• B) $613,500.
• C) $615,000.
• D) $616,500.

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Definitions:

Backplane Current

The electrical current flowing through the backplane of a computer or other electronic system, providing power to mounted components or modules.

Chassis Power Supply

The component that provides electrical power to a computer or device's chassis and its internal components.

PLC Input Interface

The PLC input interface is the component of a Programmable Logic Controller (PLC) where data from external devices is received and converted into a format that the PLC can process.

Field Devices

Equipment such as sensors, actuators, and transmitters located in the operational environment, directly interacting with the process or physical phenomena being controlled.