Hulse Corporation Retires Its $800,000 Face Value Bonds at 105

question 163

Multiple Choice

Hulse Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest.The carrying value of the bonds at the redemption date is $829,960.The entry to record the redemption will include a

• A)credit of $29,960 to Loss on Bond Redemption.
• B)debit of $29,960 to Premium on Bonds Payable.
• C)credit of $10,040 to Gain on Bond Redemption.
• D)debit of $40,000 to Premium on Bonds Payable.

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Definitions:

Normal Duration

The standard, expected amount of time taken to complete a task or process under normal conditions.

Crashing

A project management technique used to reduce the time for a project by assigning more resources to critical tasks.

CPM Network

Critical Path Method Network; a project management tool used to identify the longest sequence of dependent tasks and estimate the minimum completion time for a project.

PERT Network

Project Evaluation and Review Technique Network; a project management tool used to schedule, organize, and coordinate tasks within a project.