Question 34 On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. The journal entry on January 1, 20x8 would include which of the following? Select one: a. Debit to cash for $500,000 b. Debit to cash for $490,000 c. Credit to Discount on Bonds Payable for $10,000 d. Credit to Bonds Payable for $490,000
Question 34 On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. The journal entry on January 1, 20x8 would include which of the following? Select one: a. Debit to cash for $500,000 b. Debit to cash for $490,000 c. Credit to Discount on Bonds Payable for $10,000 d. Credit to Bonds Payable for $490,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q 34
Question 34
On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end.
The
Select one:
a. Debit to cash for $500,000
b. Debit to cash for $490,000
c. Credit to Discount on Bonds Payable for $10,000
d. Credit to Bonds Payable for $490,000
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