Webster Company Issues $1,000,000 Face Value, 6%, 5-Year Bonds Payable

question 200

Multiple Choice

Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on 31 December 2013. Interest is paid semiannually each 30 June and 31 December. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.
-The entry made by Webster Company to record issuance of the bonds payable at 31 December 2013, includes:

• A) A debit to Cash of $1,000,000.
• B) A debit to Discount on Bonds Payable of $30,000.
• C) A credit to Bonds Payable of $970,000.
• D) A credit to Bond Interest Payable of $30,000.

---

Definitions:

Ingroup Bias

The tendency to favor members of one's own group over those from different groups, often leading to prejudice and discrimination.

Prejudice

A preconceived opinion or bias against individuals or groups without sufficient knowledge, often based on stereotypes.

Shortage of Women

The term "Shortage of Women" refers to demographic situations where the number of women relative to men in a population is significantly lower than the global average, often due to cultural, social, or economic factors.

Violent Crimes

Criminal acts that involve force or the threat of force against others, including murder, rape, and assault.