On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the first interest payment, which will be greater the debit to Interest Expense or the credit to Cash?
A. The debit to Interest Expense will be greater because the market rate is greater than the stated interest rate.
B. The debit to Interest Expense will be less because the market rate is greater than the stated interest rate.
C. The debit to Interest Expense will be greater because the market rate is less than the stated interest rate.
D. The debit to Interest Expense will be lower because the market rate is less than the stated interest rate.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, ABC, Inc., issued $100,000 of 10%, 5-year bonds, for $92,280. Interest is due semiannually. When ABC records the first ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
You own a portfolio that is 32 percent invested in Stock X, 20 percent invested in Stock Y, and 48 percent invested in Stock Z. The expected returns on these three stocks are 6 percent, 19 percent, and 15 percent, respectively.
Answers (1)
List four valuable items that might be kept in an apartment or house. Next to each item, write the estimated dollar amount that each item might be worth.
Answers (2)
Jayson products uses a perpetual inventory system. at year-end, the inventory account had a balance of $280,000, but a complete year-end physical inventory indicated goods on hand costing only $273,000. jayson should:
Answers (1)
In the financial services sector, some organizations have implemented a three-lines-of defense model. What does the use of this model suggest about an organization's structure?
Answers (1)
Some required but difficult tasks are not worth learning how to do well. true or false
Answers (1)
New Questions in Business
Jane contracts Tom, a home developer, to build her a new house. In the contract it states that all necessary parts of the home must be complete before the contract is to be considered finished.
Answers (1)
How do property rights benefit entrepreneurs? by enabling them to purchase capital and use it as they see fit by allowing them to use their employees' property by facilitating the use of public property for private businesses by freeing unused
Answers (1)
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in May. The variable overhead rate is $8.90 per direct labor-hour.
Answers (1)
Genepa Corporation manufactures home appliances and other electronic products. Genepa is planning to introduce a new refrigerator model.
Answers (1)
Indirect costs are traced to cost objects. Cost drivers are used to allocate indirect costs to cost objects. An allocation rate is calculated by dividing the allocation base by the total cost to be allocated.
Answers (1)