On January 1,a Company Issues Bonds Dated January 1 with a Par

question 34

Multiple Choice

On January 1,a company issues bonds dated January 1 with a par value of $400,000.The bonds mature in 5 years.The contract rate is 7%,and interest is paid semiannually on June 30 and December 31.The market rate is 8% and the bonds are sold for $383,793.The journal entry to record the second interest payment using the effective interest method of amortization is:

• A)Debit Interest Expense $12,648.28; debit Premium on Bonds Payable $1,351.72; credit Cash $14,000.00.
• B)Debit Interest Payable $14,000.00; credit Cash $14,000.00.
• C)Debit Interest Expense $12,648.28; debit Discount on Bonds Payable $1,351.72; credit Cash $14,000.00.
• D)Debit Interest Expense $15,351.72; credit Discount on Bonds Payable $1,351.72; credit Cash $14,000.00.
• E)Debit Interest Expense $15,405.79; credit Discount on Bonds Payable $1,405.79; credit Cash $14,000.00.

Compare the adjudication process in administrative hearings with the judicial process.

Recognize the transparency and oversight measures applicable to administrative agencies.

Understand how to create colors in Java using the Color class.

Identify classes in Java used for generating random numbers.

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.

Marginal Tax Rate

The tax rate that applies to each additional dollar of income, indicating how much of the next dollar earned will be taken in taxes.

Average Tax Rate

Average Tax Rate is the proportion of the total income paid as taxes, calculated by dividing the total taxes by the total taxable income.

Total Taxes

The combined amount of all the taxes imposed by a government on an individual or business, including income tax, property tax, sales tax, etc.