A Company Issues Bonds with a $100,000 Par Value,an 8

question 192

Multiple Choice

A company issues bonds with a $100,000 par value,an 8% annual contract rate,semiannual interest payments,and a five year life.The bonds sold for $107,850.The entry to record the issuance of the bonds will include:

• A)A credit to Premium on Bonds Payable of $7,850.
• B)A debit to Discount on Bonds Payable of $7,850.
• C)A credit to Cash of $100,000.
• D)A credit to Bonds Payable of $107,850.
• E)A debit to Interest Expense of $7,850.

Comprehend the challenges and stressors associated with managerial roles and how they can be mitigated.

Understand the concept and application of measurable objectives within organizations.

Comprehend the management by objectives (MBO) process and its importance in organizational performance.

Identify the motivational aspects of goal setting in organizational behavior.

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Definitions:

Liabilities

Financial obligations or debts owed by a company to others, which must be settled over time by transferring economic benefits.

Expenses

The costs incurred in the process of generating revenue, such as rent, utilities, and salaries.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise. It serves as the starting point for determining net income.

Total Liabilities

The cumulative amount of all debts and financial obligations a company owes to outside parties.