On January 1, Parson Freight Company issues 7.5%, 10-year bonds with a par value of $2,100,000. The bonds pay interest semiannually. The market rate of interest is 8.5% and the bond selling price was $1,957,302. The bond issuance should be recorded as: Multiple Choice Debit Cash $2,100,000; credit Bonds Payable $1,957,302; credit Discount on Bonds Payable $142,698. Debit Cash $1,957,302; debit Interest Expense $142,698; credit Bonds Payable $2,100,000. Debit Cash $1,957,302; debit Discount on Bonds Payable $142,698; credit Bonds Payable $2,100,000. Debit Cash $2,100,000; credit Bonds Payable $2,100,000. Debit Cash $1,957,302; credit Bonds Payable $1,957,302.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, Parson Freight Company issues 7.5%, 10-year bonds with a par value of $2,100,000. The bonds pay interest semiannually. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd = 3000 - 2000r + 0.10Y Id = 1000 - 4000r where Y is output and r is the expected real interest rate.
Answers (1)
Department w had 2400 units, one third completed at the beginning of the period, 14000 units were transferred to department x from department w during the period, 1800 units were one half completed at the end of the period.
Answers (1)
Based on the premise that, other things equal, countries would prefer a fixed exchange rate, which of the following statements is NOT true? A) Fixed rates provide stability in international prices for the conduct of trade.
Answers (1)
The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfolio Average return 18 % 14 % Standard deviations of returns 30 % 22 % Beta 1.4 1.0 Residual standard deviation 4.0 % 0.
Answers (1)
What is demutualisation?
Answers (1)
New Questions in Business
Minstrel manufacturing uses a job order costing system. during one month minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.
Answers (1)
Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particular order, and all have normal balances. Prepare the trial balance of Smith Floor Coverings at December 31, 2018.
Answers (1)
What does macroeconomics focus on trying to understand
Answers (1)
Thomas Company has the following data for one of their recliners. This information is for the deluxe recliner model: Sales $200,000 Variable Costs 90,000 Contribution Margin 110,000 Fixed Costs 150,000 Operating Income (loss) $ (40,000) Assume that
Answers (1)
When households decide to hold more money, a. interest rates fall and investment increases. b. interest rates rise and investment increases. c. interest rates rise and investment decreases. d. interest rates fall and investment decreases?
Answers (1)