[The Following Information Applies to the Questions Displayed Below

question 31

Multiple Choice

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

On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums.


-Assuming Wayne issued the bonds for 102.5,what is the carrying value of the bonds on the December 31,Year 1 balance sheet?

• A)$601,500
• B)$613,500
• C)$615,000
• D)$616,500

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Definitions:

Physical Distribution

The activities involved in moving a product from the manufacturer to the customer, including warehousing, material handling, transportation, and order fulfillment.

Order Cycle

The complete process from when an order is placed by a customer to the delivery of the product or service, including all operational steps in between.

Order Transmission

The process through which an order's details are sent from one party to another, typically involving electronic methods to ensure speed and accuracy.

Order Receipt

The initial step in the order management process where a company formally acknowledges the receipt of a customer's order.