1. A S600,000 bond wa S590,000. The entry to s ret tired at 98 when the Net Carr
ID: 2601329 • Letter: 1
Question
1. A S600,000 bond wa S590,000. The entry to s ret tired at 98 when the Net Carrying Value of the bond was cord the retirement would include a in on bond redemption of $10,000 B) Loss on bond C) Lo redemption of $10,000 ss on bond redemption of $2,000 ain on bond redemption of $2,000. 2. A S600,000 b ond was retired at 103 when the Net Carrying Value of the bond was S622,000. The entry to record the retirement would include a A) Gain on bond redemption of $18,000 B) Loss on bond redemption of $12,000 C) Loss on bond redemption of $18,000. D) Gain on bond redemption of $4,000. 3. If Vickers Company issues 4,000 shares of S5 par value common stock (CIs) for $140,000, A) Common Stock (C/S) will be credited (CR) for $140,000. B) C) Paid-In Capital in Excess of Par Value (APIC) will be credited (CR) for $120,000. D) Cash will be debited (DR) for $120,000. Paid-In Capital in Excess of Par Value (APIC) will be credited (CR) for $20,000 4. If Common Stock (C/S) is issued for an amount greater than par value, the excess should be credited (CR) to A) Cash. B) Retained Earnings C) Paid-in Capital in Excess of Par Value. (APIC or PIC) D) Legal Capital. If Kiner Company issues 3,000 shares of S5 par value Common Stock (CIS) for S70,000, the account A) Common Stock (C/S) will be credited (CR) for $15,000. B) Paid-in Capital in Excess of Par Value (APIC) will be credited (CR) for $15,000. C) Paid-in Capital in Excess of Par Value (APIC) will be eredited (CR) for s70,000 D) Cash will be debited (DR) for $55,000. 5. PageExplanation / Answer
Solution 1:
The entry to record the retirement of bonds would include a Loss on bond redemption of $2,000.
So, correct answer is C.
Year Particulars L.F Debit ($) Credit ($) 20XX Jan-00 Bonds payable 600,000 Loss on Redemption of bonds 2,000 Discount on Notes Payable 10,000 Cash (600,000*.98) 588,000 (For bonds redeemed)Related Questions
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