Plum Corporation issues $400,000 of 7 percent,five-year bonds on January 1,20x5,and sells them on the same date for their face value.The bond indenture states that interest is to be paid on January 1 and July 1 of each year.The entry to record the first interest payment includes
A) a credit to Cash for $28,000.
B) a debit to Interest Expense for $14,000.
C) a debit to Unamortized Discount on Bonds Payable for $14,000.
D) All of these choices.
Correct Answer:
Verified
Q110: Term bonds are bonds that
A)are also called
Q111: Bond issue costs
A)must be expensed when incurred.
B)must
Q112: Bond issue costs have the effect of
A)decreasing
Q113: Any unamortized bond discount should be reported
Q114: The responsibility for receiving the proper amount
Q116: The entry to record the issuance of
Q117: Plum Corporation issues $400,000 of 7 percent,five-year
Q118: Bonds that mature in installments are called
A)term
Q119: A bond with a face value of
Q120: A bond indenture is
A)a bond that is
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