On December 31, 2013, Clark Sales Has a Bonds Payable

question 50

Multiple Choice

On December 31, 2013, Clark Sales has a Bonds Payable Balance of $89,000 and a Discount on Bonds Payable of $2,350. On the balance sheet, how will this information be shown?

• A)$89,000 less Discount of $2,350 for a Net Balance of $86,650
• B)$89,000 plus Discount for a total balance of $91,350
• C)$89,000
• D)$89,000 less one-tenth of $2,350 for a Net Balance of $88,765

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Definitions:

Rate Of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Compounded Monthly

Interest calculation method where the interest earned is added to the principal each month, resulting in interest on interest.

Monthly Deposits

Regular payments deposited into a financial account or investment plan on a monthly basis, typically to save or earn interest over time.

Investment

The allocation of resources, usually money, to generate income or profit, including purchasing assets or securities.