Multiple Choice
A company prepared the following journal entry: 
Which of the following statements correctly describes the effect of this journal entry on the financial statements?
A) Total liabilities increase by the amount of the debit to cash.
B) Premium on bonds payable is reported on the balance sheet as a contra-liability account.
C) Stockholders' equity increases by the amount of the credit to premium on bonds payable.
D) The credit to bonds payable is the amount reported as a cash flow from financing activities.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: If a company calls bonds with a
Q9: If a bond is issued at 101,the
Q16: Which of the following statements correctly describes
Q23: Issues of bonds in exchange for cash
Q59: On July 1, 2016, Garden Works, Inc.
Q60: When a bond payable is issued at
Q61: Eaton Company issued $5 million of bonds
Q66: Newton Company issued its $1,000,000, 7%, ten-year
Q84: The major disadvantages of issuing a bond
Q119: When recording bond issuance costs for fees