Your Company Issues $500,000 in Bonds at an Issue Price

question 115

Multiple Choice

Your company issues $500,000 in bonds at an issue price of 98.The company will record:

• A)a debit of $490,000 to cash,a debit of $10,000 to a contra liability account to reflect the discount,and a credit of $500,000 to bonds payable.
• B)a debit of $490,000 to cash,a debit of $10,000 to a Loss account to reflect the discount,and a credit of $500,000 to bonds payable.
• C)a debit of $500,000 to bonds payable,a credit of $10,000 to a contra liability account to reflect the discount,and a credit to cash of $490,000.
• D)a debit of $490,000 to bonds payable,a debit of $10,000 to a contra asset account to reflect the discount,and a credit to cash of $500,000.

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Definitions:

Frustration of the Client

The feeling of dissatisfaction or annoyance experienced by clients due to unmet expectations or obstacles in achieving their goals.

Conceptual Phase

The early stage in the lifecycle of a project where ideas are formulated, key objectives are set, and feasibility is evaluated.

Design Phase

A stage in a project where the plans, blueprints, or prototypes are developed before production or construction begins.

Revisit Decisions

The process of reviewing and potentially altering decisions in light of new information or changing circumstances.