If $110,000 of 12 Percent Bonds Are Issued (At Face $\begin{array}{ll}\text { Cash } & 111,100 \\\text { Bonds Payable } &&110,000 \\\text { Bond Interest Expense } &&1,100\end{array}$

question 90

Multiple Choice

If $110,000 of 12 percent bonds are issued (at face value) one month after the last semi-annual interest date,the entry made to record the issue is:

• A)
• \(\begin{array}{ll}
• \text { Cash } & 111,100 \\
• \text { Bonds Payable } &&110,000 \\
• \text { Bond Interest Expense } &&1,100
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text { Cash } &111,100\\
• \text { Bonds Payable }&&111,100
• \end{array}\)
• C)
• \(\begin{array}{lr}
• \text { Cash } & 105,600 \\
• \text { Bond Interest Expense } & 5,500 \\
• \text { Bonds Payable }&&111,100
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Cash } & 115,500 \\
• \text { Bonds Payable } &&110,000 \\
• \text { Bond Interest Expense }&&5,500
• \end{array}\)

---

Definitions:

Provisional Income

Income that is not guaranteed or fixed, often used in reference to determining the taxability of certain benefits such as Social Security.

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Marginal Ordinary Income Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, influencing decisions on additional income.