Safeway Company Issued $100,000 of Fixed Interest Rate Bonds Payable

question 106

Multiple Choice

Safeway Company issued $100,000 of fixed interest rate bonds payable at 98.At year-end,the bonds were selling in the bond market at 99.What entry would Safeway make at year-end to record the change in selling price?

• A)Debit Bonds Payable $1,000; credit Interest Expense $1,000.
• B)Debit Interest Expense $1,000; credit Bonds Payable $1,000.
• C)Debit Investment in Bonds $1,000; credit Investment Revenue $1,000.
• D)No entry needed.

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Definitions:

Antigen

A foreign invader of the body, such as a bacterium or virus.

Foreign Invader

An external agent, often microscopic, that enters the body and can cause disease or trigger an immune response.

Lymphocyte

A type of white blood cell that plays a vital role in the immune system, helping the body fight infection and disease.

Collagen

A major structural protein found in skin, bones, tendons, and other connective tissues, crucial for tissue strength and elasticity.