17.

Treasury stock is a (an)

. Single choice.

a Liability account

b Asset account

c Contra equity account

d None of the above

18.

On March 31, 2020, ABC Corporation received authorization to issue Rs.50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2020 and issued at face value.

Prepare the journal entry at March 31, 2020, to record the sale of the bonds.

. Single choice.

a Dr: Cash Rs.50,000 Cr: B/P Rs. 50,000

b Cr: Cash Rs.50,000 Dr: B/P Rs. 50,000

c Dr: Cash Rs.50,375 Cr: B/P Rs. 50,375

d None of the above