Mark Corporation issues $2,880,000, 10-year, 7% bonds dated January 1 at 99. The journal entry to...

   

Transcribed Image Text:

Mark Corporation issues $2,880,000, 10-year, 7% bonds dated January 1 at 99. The journal entry to record the issuance will include a: www O A. credit to Discount on Bonds Payable for $28,800. B. credit to Cash for $2,880,000. C. debit to Cash for $2,880,000. O D. debit to Discount on Bonds Payable for $28,800. When a business receives cash from customers before earning the revenue, the O A. Accounts Receivable OB. Unearned Revenue OC. Accounts Payable O D. Sales Tax Payable account is credited. According to FASB, when should a company journalize a contingent liability? ... O A. Journalize the contingent liability, even though you will probably win the lawsuit. B. Journalize the contingent liability if it is probable that the loss will occur, and the amount of the loss can be reasonably estimated. OC. Journalize the contingent liability only if the amount can be estimated and the probability of loss is reasonably possible. O D. Do not journalize the contingent liability under any circumstances. Mark Corporation issues $2,880,000, 10-year, 7% bonds dated January 1 at 99. The journal entry to record the issuance will include a: www O A. credit to Discount on Bonds Payable for $28,800. B. credit to Cash for $2,880,000. C. debit to Cash for $2,880,000. O D. debit to Discount on Bonds Payable for $28,800. When a business receives cash from customers before earning the revenue, the O A. Accounts Receivable OB. Unearned Revenue OC. Accounts Payable O D. Sales Tax Payable account is credited. According to FASB, when should a company journalize a contingent liability? ... O A. Journalize the contingent liability, even though you will probably win the lawsuit. B. Journalize the contingent liability if it is probable that the loss will occur, and the amount of the loss can be reasonably estimated. OC. Journalize the contingent liability only if the amount can be estimated and the probability of loss is reasonably possible. O D. Do not journalize the contingent liability under any circumstances.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Mark Corporation Bond Issuance The co... View the full answer