A Bond Was Issued at a Discount

question 59

Multiple Choice

A bond was issued at a discount. The journal entry to record the semiannual interest payment would include:

• A)a debit to interest expense, a debit to discount on bonds payable and a credit to cash.
• B)a debit to interest expense, a credit to discount on bonds payable and a credit to cash.
• C)a debit to interest expense, a debit to cash and a credit to discount on bonds payable.
• D)a debit to discount on bonds payable and a credit to cash.

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Definitions:

Reliability

The degree to which a system, component, or process consistently performs according to its intended or designed function.

Manufacturing-Based Quality

Manufacturing-based quality focuses on ensuring that a product or service meets a specified standard during the manufacturing or production process.

Design Specifications

Detailed descriptions of the characteristics that a product or project must meet.

Blueprint

A detailed plan or scheme outlining the design, function, or operations of a project or object, often used in construction and engineering.