Question
1. The statement of cash flows reports: A) Revenues, gains, expenses, and losses. B) Equity, net income, and dividends. C) Cash inflows and cash outflows
1. The statement of cash flows reports:
A) Revenues, gains, expenses, and losses.
B) Equity, net income, and dividends.
C) Cash inflows and cash outflows for an accounting period.
D) Assets, liabilities, and equity.
E) Changes in equity.
2. On January 1 of 2015, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semi-annually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:
A) Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.
B) Debit Cash $1,864,097; debit Interest Expense $135,903; credit Bonds Payable $2,000,000.
C) Debit Cash $2,000,000; credit Bonds Payable $2,000,000.
D) Debit Cash $2,000,000; credit Bonds Payable $1,864,097; credit Discount on Bonds Payable $135,903.
E) Debit Cash $1,864,097; credit Bonds Payable $1,864,097.
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