I need help with a math problem

Mathematics
Tutor: None Selected Time limit: 1 Day

On October 1, 2010 Macklin Corporation issued 5%, 10-year bonds with a face value of $1,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

The entry to record the issuance of the bonds would include a credit of

a. $25,000 to interest Payable.
b. $40,000 to Discount on Bonds Payable.
c. $960,000 to Bonds Payable.
d. $40,000 to Premium on Bonds Payable.

Nov 19th, 2015

Thank you for the opportunity to help you with your question!

On October 1, 2010 Macklin Corporation issued 5%, 10-year bonds with a face value of $1,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

The entry to record the issuance of the bonds would include a credit of
d. $40,000 to Premium on Bonds Payable.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 19th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Nov 19th, 2015
...
Nov 19th, 2015
Dec 3rd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer