The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semi-annual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
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The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semi-annual bond
with interest paid on June 30th and December 31st. The entry to record the sale of the
bond would include a:
A. $500,000 credit to Cash.
B. $500,000 credit to Bonds Payable.
C. $30,000 debit to Interest Expense.
D. $500,000 debit to Accounts Payable.
Transcribed Image Text:The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semi-annual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable.
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