[The Following Information Applies to the Questions Displayed Below

question 75

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1 Year 1, Gordon Corporation issued bonds with a face value of $70,000, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds were issued at 98. Interest is payable in cash on December 31 each year. Gordon uses the straight-line method to amortize bond discounts and premiums.

-Which of the following shows the effect of the first interest payment and amortization of the premium or discount on the elements of the financial statements?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Follicle-Stimulating Hormone

A hormone secreted by the anterior pituitary gland that promotes the formation of ova or sperm.

Adrenal Glands

are small glands located above the kidneys that produce a variety of hormones including adrenaline and steroids like cortisol.

Kidneys

Vital organs involved in filtering waste from the blood, regulating blood pressure, and maintaining electrolyte balance.

Hyperthyroidism

A condition caused by excessive secretion of the thyroid glands.