When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature,

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SVETLANKA909090 [29]

2 years ago

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When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature,

the issuer records its payment of principal with a debit to _______ in the amount of _______.

Business

1 answer:

olya-2409 [2.1K] · Answer 1 · 2023-04-04T04:39:19+03:00

When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds and pay interest semiannually. When the bonds mature, the issuer records the journal entry of its payment of principal with a debit to cash in the amount of $50,000.

<h3>What is a journal entry?</h3>

A systematic way of making and maintaining the record of the financial transactions in the journal books of an organization, with a proper narration of the same, is known as a journal entry.

Hence, option C holds true regarding the journal entry.

Learn more about a journal entry here:

brainly.com/question/20421012

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