Johansen Company issued a bond at a discount. Which of the following shows how the issuance of the bonds affects the financial statements?Balance SheetA.C.D.Assets = Liabilities +Multiple ChoiceOOOOOption AOption COption BOption DStockholders'Equityn/an/an/aRevenuen/an/an/an/aIncome StatementExpense+n/a+n/a= Net Income Statement of Cash Flows+OA+FA+FA+OAn/an/a

the bond are issued by the company then it leads to increase in the liability of the company at the same time it has the effect on the cash flow from the financing activities for the calculation that is doneThe correct answer is option B the bond when bought the company then there is increased in the assets and liability and also it's adjustment is done in the cash flow from the financing activities. There is no adjustment that needs to be done in the revenue and expenses and the equity.

Business

Accounting

Johansen Company issued a bond at a discount. Which of the following shows how the issuance of the bonds affects the financial statements? A. B. C. D. Assets Liabilities + + Multiple Choice O O Balance Sheet OO Option A Option C Option B Option D Stockholders' Equity n/a n/a n/a Revenue n/a n/a n/a n/a Income Statement Expense + n/a + n/a = Net Income Statement of Cash Flows +0A +FA +FA +0A - n/a n/a

Johansen Company issued a bond at a discount. Which of the following shows how the issuance of the bonds affects the financial statements? A. B. C. D. Assets Liabilities + + Multiple Choice O O Balance Sheet OO Option A Option C Option B Option D Stockholders' Equity n/a n/a n/a Revenue n/a n/a n/a n/a Income Statement Expense + n/a + n/a = Net Income Statement of Cash Flows +0A +FA +FA +0A - n/a n/a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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