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On 1 April, Year 1, Cricket Corporation Issues $60 Million

Question 145

Multiple Choice

On 1 April, year 1, Cricket Corporation issues $60 million of 12%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each 1 April and 1 October.


-With respect to this bond issue, Cricket Corporation's statement of financial position at 31 December, Year 1, will include:


A) Bonds payable of $61,800,000.
B) Bonds payable of $63,600,000.
C) Bonds payable of $60 million, as well as interest payable of $1,800,000.
D) Bonds payable of $60 million, as well as interest payable of $3,600,000.

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