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

question 133

Multiple Choice

Blanding Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2014. The bonds pay interest on February 28 and August 31. Assume that Blanding uses the straight-line method for amortization. The journal entry to record the first interest payment on August 31, 2014 would be a:

• A)debit to Cash for $40,000.
• B)debit to Interest Expense for $41,000.
• C)debit to Interest Expense for $39,000.
• D)debit to Discount on Bonds Payable for $1,000.

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Definitions:

Areolae

The pigmented areas surrounding the nipples of the breast, which can vary in size, color, and texture among individuals.

Labia Majora

The outer folds of skin surrounding the vulva in females, serving protective and sexual functions.

Sexual Excitement

The physiological and emotional state of arousal and anticipation that precedes sexual activity, characterized by increased heart rate, blood flow, and libido.

Hardening

The process of becoming firm or rigid; in a medical context, it can refer to the calcification or other physical changes in tissues or vessels.