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Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual stated rate of interest. Interest is

Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual stated rate of interest. Inte

Multiple Choice oChoice A oChoice D oO Choice B oChoice C  

Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual stated rate of interest. Interest is payable in cash on December 31 of each year. Which of the following reflects the financial statement effects of the first interest payment? Assets = Liab. + Equity Revenue- Expense= Net Inc. A.(7,500) B. (7,500)= c.(7,500)=(7,500)+ D.(7,500) = Cash flow %3D (7,500) + (7,500) FA (7,500) FA (7,500) OA (7,500) OA %3D NA NA NA NA %3D NA +(7,500) NA 7,500 = (7,500) NA NA NA %3D NA NA +(7,500) NA -| 7,500 = (7,500) Multiple Choice Choice A Choice D Multiple Choice Choice A Choice D Choice B Choice C

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