Orange Corp. is in need of cash. It issues bonds with a $500,000 face value....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Orange Corp. is in need of cash. It issues bonds with a $500,000 face value. The bonds have a 5% coupon rate. The market rate is 5%. The bonds have a life of 5 years, and are compounded semiannually. Orange Corp. issues the bonds on 1/1/2022.
__________________________________
What is the journal entry Orange Corp. will record when it retires the bonds in 5 years (after/not including the final coupon payment):
Question 4 options:
|
| Dr. Bonds Payable $500,000 Cr. Cash $500,000 |
|
| Dr. Bonds Payable $500,000 Cr. Interest Revenue $500,000 |
|
| Dr. Interest Expense $500,000 Cr. Cash $500,000 |
|
| Dr. Cash $500,000 Cr. Bonds Payable $500,000 |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.