25. A S300,000 bond issue witdh a carrying value the retirement of bonds is a. B

Question

25. A S300,000 bond issue witdh a carrying value the retirement of bonds is a. Boods Payable 309,000 b. Bonds Payable 311,000 with a carrying value ofS31 1,000 iscalled . 103-nd r ed The-rytomond c. Cash Bonds Payable d. Bonds Payable 300,000 Unamortised Bond Premium 11.000 309,000 Gain on Retirement of Bonds e. none of the above 26. A0000 bond issue with a carrying value of $47,000 is called at 102 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 50,000 Loss on Retirement of Bonds Unamortised Bond Discount 3,000 51,000 b. Bonds Payable 47,000 51,000 50,000 c. Bonds Payable Gain on Retirement of Bonds Cash 3,000 47,000 50,000 d. Bonds Payable Loss on Retirement of Bonds 1,000 51,000 Cash e none of the above

Explanation / Answer

25 Bonds payable 300000 Unamortized Bond premium 11000         Cash 309000 =300000*1.03         Gain on Retirement of bonds 2000 Option D is correct 26 Bonds payable 50000 Loss on Retirement of bonds 4000        Unamortized Bond discount 3000         Cash 51000 =50000*1.02 Option A is correct

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