The Journal Entry a Company Records for the Issuance of Bonds

question 155

Multiple Choice

The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to

• A) debit Bonds Payable, credit Cash
• B) debit Cash and Discount on Bonds Payable, credit Bonds Payable
• C) debit Cash, credit Premium on Bonds Payable and Bonds Payable
• D) debit Cash, credit Bonds Payable

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Definitions:

Upward Communication

The process of information flow from the lower levels of a hierarchy to the upper levels within an organization, typically encompassing feedback, reports, or requests.

Open-door Policy

A management practice that encourages open and direct communication between employees and their supervisors or managers.

Formal Grievance Procedure

A systematic process provided by employers for employees to formally raise and resolve workplace disputes or complaints.

Market Penetration Rate

A measure used to determine the extent to which a product or service is known and used by customers within a particular market.