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:

Predict

To forecast or estimate the outcome of a particular process or reaction based on known data or theories.

Nitroglycerine

A highly volatile and explosive chemical compound used in dynamite and in medicinal preparations as a vasodilator.

Glycerine

A simple polyol compound used in foods, pharmaceuticals, and cosmetics for its moisturizing and solvent properties.

Nitric Acid

A highly corrosive and strong mineral acid with the formula HNO3, commonly used in the production of fertilizers, explosives, and in various nitration processes.