On June 30, Year 1, Cashews, Inc., issued $200,000 worth of 8% bonds at 100.000. Interest will be paid annually on June 30. For each item listed below, select the correct dollar amount and December 31 Year 1 financial statement for each line item. What is interest payable?

A. 16,000; Balance Sheet
B. (16,000); Income Statement
C. (8,000); Income Statement
D. 8,000; Balance Sheet
E. 200,000; Balance Sheet
F. (16,000); Statement of Cash Flows
G. 0; Statement of Cash Flows

Ans: D. 8,000; Balance Sheet

Business

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