Author Question: If a government issues bonds with a face value of 5,000,000 at a 2 discount and incurs 55,000 of ... (Read 42 times)

arivle123 · **on:** Jul 6, 2018

If a government issues bonds with a face value of 5,000,000 at a 2 discount and incurs 55,000 of issuance costs, the General Long-Term Liabilities accounts will report a liability of

a. 0
b. 4,900,000
c. 4,955,000
d. 5,000,000
e. 5,055,000

Question 2

Sales Discounts and Sales Returns and Allowances have the following characteristics in common:
a. Contra-Asset, DR
b. Contra-Revenue, DR
c. Contra-Asset, CR
d. Contra-Revenue, CR