Sassy's trial balance shows $200,000 face value of bonds with a discount balance of $2,000. The bonds mature in 10 years. How will the bonds be presented on the balance sheet?
A. Bonds payable $ 198, 000 (net of $ 2, 000 discount) will be listed as a long-term liability.
B. Bonds payable $ 200, 000 will be listed as a long-term liability. A $ 2, 000 discount on bonds payable will be listed as a contra current liability.
C. Bonds payable $ 200, 000 will be listed as a long-term liability.
D. Bonds payable $ 200, 000 will be listed as a long-term liability.
Ans: A. Bonds payable $ 198, 000 (net of $ 2, 000 discount) will be listed as a long-term liability.
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On June 18, Burger Corporation entered into a firm commitment to purchase specialized equipment from the Hyabuza Trading Company for ¥80,000,000 on August 20 . The exchange rate on June 1 . is ¥100 = $1 . To reduce the exchange rate risk that could increase the cost of the equipment in U.S. dollars, Burger pays $12,000 for a call option contract. This contract gives Burger the option to
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