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Dafna1 [17]
3 years ago
9

Your company issues $50,000 of one-year, 10% bonds at face value. The journal entry to record this transaction will include a de

bit to:
A. Cash and a credit to Bonds Payable for $50,000
B. Cash for $55,000, a credit to Bonds Payable for $50,000, and a credit to Interest Payable for $5,000
C. Cash and a credit to Bonds Payable for $55,000
D. Cash for $50,000, a debit to Interest Expense for $5,000, and a credit to Bonds Payable for $55,000.
Business
1 answer:
Ostrovityanka [42]3 years ago
8 0

Answer:

A. Cash and a credit to Bonds Payable for $50,000

Explanation:

The journal entry is shown below:

Cash $50,000  

           To Bonds Payable  $50,000

(being the issuance of the bond payable is recorded)

We simply debit the cash as it increased the assets and credited the bond payable as it also increased the liabilities so that the proper posting could be done i.e $50,000 should be credited and debited

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3 years ago
In 1626, Peter Minuit of the Dutch West India Company paid $24 to purchase Manhattan Island in New York. In retrospect, if Mr Mi
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Answer:

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Explanation:

a. Simple interest

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b. Compound interest

The value in 2014 of the investment at a 10% compound interest rate is:

C= \$24(1.10)^{(2014-1626)}\\C=\$2.7579*10^{17}

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Answer:

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