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

question 78

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

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Definitions:

Electrical Cost

The financial outlay for electricity usage, often a significant part of operational expenses for businesses and households alike.

Contribution Margin

A financial metric that represents the difference between a company's sales revenue and its variable costs. It is used to analyze the profitability of individual products.

Monthly Sales Volume

Refers to the total number of units sold or services rendered in a month.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable, without being affected by other variables.