1. A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry...

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Accounting

1.
A corporation issues $500,000 of 20-year, 7% bonds dated January1 at 95. The journal entry to record the issuance will include
Group of answer choices
a credit to Bonds Payable for $500,000.
a credit to Premiums on Bonds Payable for $25,000.
a debit to Interest Expense for $25,000.
a credit to Discount on Bonds Payable for $25,000.
a debit to Cash for $500,000.
2.
If the market interest rate for a bond is higher than the statedinterest rate, the bond will sell at
Group of answer choices
the conversion rate
a premium.
the termination rate
a discount.
par.

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1 A corporation issues 500000 of 20year 7 bonds dated January 1 at 95 The journal entry to record the issuance will include a debit to Cash for 500000 and a credit to Bonds Payable for 500000 The journal entry for the above transaction will be Cash ac dr 500000 To bonds Payable 500000 2 If the market interest See Answer

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1. A corporation issues $500,000 of 20-year, 7% bonds dated January 1 at 95. The journal entry...

50.1K

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Accounting

Answer & Explanation Solved by verified expert

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