Question
Your Company issued a $100,000 face value bond on January 1, 2017. The bond was issued at par and carried a 20-year term to maturity.
Your Company issued a $100,000 face value bond on January 1, 2017. The bond was issued at par and carried a 20-year term to maturity. It had a 3% stated rate of interest that was payable in cash on December 31st of each year. The issuing of the bond would appear on the income statement and the statement of cash flows on the December 31,2017 as which of the following?
| Interest Expense | Cash Outflow From | ||
|
|
| Operating | Financing |
| A. | zero | NA | $100,000 |
| B. | zero | $100,000 | NA |
| C. | $100,000 | NA | $100,000 |
| D. | $100,000 | $100,000 | NA |
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College Accounting Chapters 1-30
Authors: David Haddock, John Price, Michael Farina
16th Edition
1260247902, 978-1260247909
