Webster's Entry at June 30, 2012, to Record the First

question 3

Multiple Choice

Webster's entry at June 30, 2012, to record the first semiannual payment of interest and amortization of discount on the bonds includes a:

• A) Debit to Bond Interest Expense of $30,000.
• B) Credit to Cash of $33,000.
• C) Debit to Discount on Bonds Payable of $3,000.
• D) Debit to Bond Interest Expense of $33,000.

---

Definitions:

Common Area Costs

Expenses associated with the maintenance and repair of shared spaces in a property, often divided among tenants or owners.

Floor Area

The total square footage of all floors within a building, including any basements or mezzanines.

Prorated Basis

An adjustment made based on dividing something proportionally, such as payments or charges, over a specified period.

Profit-Sharing Bonus

A type of incentive given to employees, typically as part of their compensation package, where they receive a share of the company's profits.