Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
Managerial Accounting, Student Value Edition Plus NEW MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780133849332
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 13, Problem 5QC
To determine

To classify: The income from interest and dividend in the activities of the cash flow statement.

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On January 1, 2018, Montgomery Inc. issued $200,000, 20-year, 5% bonds at 102. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2018, is: a. debit cash, $200,000; credit bonds payable, $200,000. b. debit cash, $250,000; debit premium on bonds payable, $5,000; credit bonds payable, $255,000. c. debit cash, $204,000; credit bonds payable, $200,000; credit premium on bonds payable, $4,000. d. debit cash, $252,500; credit bonds payable, $250,000, credit premium on bonds payable, $2,500
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