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What is main difference between a bond and a share of stock

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Reference no: EM131534669

Question: 1. On May 1, a company sells 9% bonds with a $500,000 par value that pay semiannual interest on each January 1 and July 1. The bonds are sold at par plus interest accrued since January 1. The issuer records the first semiannual interest payment on July 1 with

(a) a debit to Interest Payable for $15,000,

(b) a debit to Bond Interest Expense for $22,500, or

(c) a credit to Interest Payable for $7,500.

2. What is the main difference between a bond and a share of stock?

Reference no: EM131534669

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