A Company Sells a Bond with a Face Value of $10,000

question 83

Multiple Choice

A company sells a bond with a face value of $10,000 and receives a premium of $800.Using the bonds payable,net shortcut,the company would make the following journal entry:

• A)Debit Cash for $10,800 and credit Bonds Payable,net for $10,800.
• B)Debit Cash for $10,800,credit Bonds Payable,net for $10,000,and credit Bond Premium for $800.
• C)Debit Cash for $10,000 and debit Interest Expense for $800,credit Bonds Payable,net for $10,000 and credit Bond Premium for $800.
• D)Debit Cash for $10,000,debit Interest Expense for $800,credit Bonds Payable for $10,000 and credit Bond Premium for $800.

---

Definitions:

Reengineering Service

Involves fundamentally redesigning business processes, services, or products to achieve drastic improvements in critical measures of performance such as cost, quality, service, and speed.

Specialized Consultant

An expert hired to provide detailed advice and solutions in a specific area or industry.

Employment Advertising

The process of promoting job vacancies through various channels to attract potential candidates.

Maintaining Employees

Strategies and practices aimed at retaining staff and preventing turnover by ensuring job satisfaction and engagement.