A Corporation Issues Bonds That Pay Interest Each February 1

question 146

Multiple Choice

A corporation issues bonds that pay interest each February 1 and August 1.The corporation's December 31 adjusting entry might include a

• A)debit to Unamortized Bond Premium.
• B)debit to Cash.
• C)debit to Bond Interest Payable.
• D)credit to Bond Interest Income.

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Definitions:

Business Plan

A document that outlines a company's goals, strategies, target market, and financial forecasts, serving as a road map for startup and growth.

Entrepreneur

An individual who starts, organizes, manages, and assumes the risks of a business or enterprise.

Small Companies

Organizations with a limited number of employees and revenue, often characterized by a narrow market focus.