On the maturity date of bonds payable after interest has been paid, the issuing company will do which of the following?
A) Record a loss of the market rate of interest on the maturity date exceeds the stated rate of interest.
B) Pay bondholders the original amount the bondholders paid to purchase the bonds.
C) Debit Bonds Payable and credit Cash for the par value of the bonds.
D) Debit Cash and credit Bonds Payable for the carrying amount of the bonds.

Question

Quizplus · Accepted Answer

On the maturity date of bonds payable, the issuing company will debit Bonds Payable and credit Cash for the par value of the bonds, reflecting the repayment of the principal amount to the bondholders.

On the Maturity Date of Bonds Payable After Interest Has