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.

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Definitions:

No-need Objection

A type of sales objection where the customer believes they do not need the product or service being offered.

Computer Tech

Short for computer technology, it encompasses the hardware and software used to develop, test, and maintain computer systems and applications.

Scanner

A device that converts physical documents into digital format, or in retail, a tool used to read barcodes and pricing information.

Requesting More Information

The act of seeking additional details or clarification about a topic, product, or situation to make informed decisions or deepen understanding.