QUESTION 24 On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 6% and records the following journal entry: Dr. Cash $480,000 Dr. Discount on bonds payable $20,000 Cr. Bonds payable $500,000 The bonds pay interest annually, on Dec. 31, which is when the company's fiscal year ends. The journal entry made on January 1, 2020, when the bonds mature will include: O a. A credit to cash for $480,000 and a debit to bonds payable for $500,000. O b. A credit to cash for $500,000 and a debit to bonds payable for $500,000. OC. A debit to cash for $500,000 and a credit to bonds payable for $500,000. Od. A debit to cash for $480,000 and a credit to bonds payable for $500,000.

QUESTION 24 On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 6% and records the following journal entry: Dr. Cash $480,000 Dr. Discount on bonds payable $20,000 Cr. Bonds payable $500,000 The bonds pay interest annually, on Dec. 31, which is when the company's fiscal year ends. The journal entry made on January 1, 2020, when the bonds mature will include: O a. A credit to cash for $480,000 and a debit to bonds payable for $500,000. O b. A credit to cash for $500,000 and a debit to bonds payable for $500,000. OC. A debit to cash for $500,000 and a credit to bonds payable for $500,000. Od. A debit to cash for $480,000 and a credit to bonds payable for $500,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 71E

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