The Amazing Widget Company Issues $500,000 of 6%, 10-Year Bonds

question 56

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2014. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the issuance would include a:

• A)debit to Cash for $500,000.
• B)credit to Bonds Payable for $515,000.
• C)debit to Premium on Bonds Payable for $15,000.
• D)debit to Cash for $515,000.

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Definitions:

Blastocyst

An early stage of embryonic development in mammals; a structure formed in the early development of mammals. It possesses an inner cell mass, which subsequently forms the embryo.

Conception

The process of fertilization where a sperm cell unites with an egg cell, leading to the formation of a zygote.

Dependency

A state of relying on or being controlled by someone or something else.

Cultural Transmission

The process by which norms, values, knowledge, and skills are passed from one generation to the next within a society.