The Entry Made by Trego Company to Record Issuance of the Bonds

question 159

Multiple Choice

The entry made by Trego Company to record issuance of the bonds payable at December 31, 2011, includes:

• A) A debit to Cash of $1,000,000.
• B) A credit to Premium on Bonds Payable of $20,000.
• C) A credit to Bonds Payable of $1,020,000.
• D) A credit to Bond Interest Payable of $20,000.

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Definitions:

Emotional Standstill

A state where an individual feels emotionally stuck or unable to progress beyond certain feelings.

Economic Success

The achievement of financial prosperity, growth, or stability in an individual or organizational context.

Business Approach

A method or strategy adopted by a company or organization to achieve its objectives and maximize success.

Logical Incrementalism

A strategy-making process that involves making decisions step-by-step based on logic and orderly sequencing.