The Journal Entry a Company Records for the Issuance of Bonds

question 155

Multiple Choice

The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to

• A) debit Bonds Payable, credit Cash
• B) debit Cash and Discount on Bonds Payable, credit Bonds Payable
• C) debit Cash, credit Premium on Bonds Payable and Bonds Payable
• D) debit Cash, credit Bonds Payable

---

Definitions:

Prenatal Development

The process of growth and development within the womb from conception until birth.

Conception

The process of fertilization when a sperm cell fuses with an ovum, leading to the formation of a zygote and the beginning of pregnancy.

Schizophrenia

A mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Gestation

The period of time during which a fetus develops inside the mother's womb, from conception to birth.