The Journal Entry a Company Records for the Issuance of Bonds

question 129

Multiple Choice

The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be

• 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:

Productivity

measures the efficiency of production of goods or services expressed as a ratio of output to inputs.

Promotes Innovation

Encourages or facilitates the introduction of new ideas, products, or methods, fostering a culture of creativity and advancement.

Inhibits Innovation

Refers to factors or mechanisms that obstruct or slow down the process of creating new ideas, products, or methods.

Public Organizations

Entities that are owned, operated, and funded by the government, serving the public interest and providing services to citizens.