On June 1,Roberts Inc

question 52

Multiple Choice

On June 1,Roberts Inc.issued bonds with a par value of $100,000.The bonds mature in 5 years and pay 12% annual interest,payable each June 30 and December 31.The bonds sell at par value plus interest accrued since January 1.How would the company record the issuance of the bonds on June 1?

• A)Debit Cash for $100,000 and credit Bonds Payable for $100,000.
• B)Debit Cash for $105,000 and credit Bonds Payable for $105,000.
• C)Debit Cash for $101,000 and credit Bonds Payable for $101,000.
• D)Debit Cash for $105,000,credit Bonds Payable for $100,000,and credit Interest Payable for $5,000.
• E)Debit Cash for $101,000,credit Bonds Payable for $100,000,and credit Interest Payable for $1,000.

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Definitions:

Concentration Gradient

The gradual change in the concentration of solutes in a solution as a function of distance through a solution.

Active Transport

Energy-requiring mechanism in which a transport protein pumps a solute across a cell membrane against the solute’s concentration gradient.

Transport Protein

Protein that moves specific ions or molecules across a cell membrane.

Solute

A dissolved substance.