A Company Issued 8%, 15-Year Bonds with a Par Value

question 96

Multiple Choice

A company issued 8%, 15-year bonds with a par value of $550,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is:

• A) No entry is needed, since no interest is paid until the bond is due.
• B) Debit Bond Interest Expense $22,000; credit Cash $22,000.
• C) Debit Bond Interest Payable $22,000; credit Cash $22,000.
• D) Debit Bond Interest Expense $550,000; credit Cash $550,000.
• E) Debit Bond Interest Expense $44,000; credit Cash $44,000.

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Definitions:

Muscle Cells

Specialized cells designed to contract and cause movement; can be classified as skeletal, cardiac, or smooth muscle cells.

Muscle Fibers

Individual cells of muscles that are long, cylindrical, and capable of contraction to facilitate body movements.

Spindle-Shaped Cells

Cells that taper at both ends and are found in smooth muscle tissues and some types of soft tissue.

Skeletal Muscle

A type of striated muscle tissue that is voluntarily controlled, responsible for movement of the skeleton.