Chang Industries Has Bonds Outstanding with a Par Value of $200,000

question 80

Multiple Choice

Chang Industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000.If the company calls these bonds at a price of $201,000,the gain or loss on retirement is:

• A)$1,000 gain.
• B)$2,000 loss.
• C)$3,000 gain.
• D)$1,000 loss.
• E)$2,000 gain.

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Definitions:

Accounts Receivable

Financial obligations that clients have towards a company for goods or services delivered but still awaiting payment.

Bank Reconciliation

The process of comparing and adjusting an entity’s accounting records with the bank statements to ensure accuracy and consistency.

Monthly Basis

A regular interval or frequency of events or assessments occurring once every month.

Proving Accuracy

The process of ensuring that financial records and transactions are correct, precise, and free from error.