Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?

Are you having trouble answering the question “Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?

A) Increase assets and liabilities.

B) Increase and decrease assets.

C) Increase assets and stockholders’ equity.

D) Increase and decrease stockholders’ equity.

Answer: A

We hope you have got the correct answer to your question “Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

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Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?

Are you having trouble answering the question “Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?

A) Increase assets and liabilities.

B) Increase and decrease assets.

C) Increase assets and stockholders’ equity.

D) Increase and decrease stockholders’ equity.

Answer: A

We hope you have got the correct answer to your question “Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.’s accounting equation?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

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Your email address will not be published. Required fields are marked *