On January 1, 2015, Hernandez Corporation issued $2,000,000, 8%, 10-year bonds at 98. The journal entry to record the issuance will show a
A. debit to Cash of $2,000,000
B. credit to Bonds Payable for $2,040,000
C. credit to Discount on Bonds Payable for $40,000
D. debit to Cash for $1,960,000
Ans: D. debit to Cash for $1,960,000
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The accountant for the Pryor Sales Company is preparing the income statement for 2012 and the balance sheet at December 31, 2012. Pryor uses the periodic inventory system. The January 1, 2012 merchandise inventory balance will appear
a. only as an asset on the balance sheet. b. only in the cost of goods sold section of the income statement. c. as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet. d. as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.
Under most homeowners' policies compensation for structural damage is at
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