A $100,000 Bond Was Retired at 97 When the Carrying

question 63

Multiple Choice

A $100,000 bond was retired at 97 when the carrying amount of the bond was $102,500. The entry to record the retirement would include a

• A)gain on bond redemption of $2,500.
• B)loss on bond redemption of $2,500.
• C)loss on bond redemption of $5,500.
• D)gain on bond redemption of $5,500.
• Use the information below to answer questions 134-136.
• Sun and Surf Inc issues $200,000 of 4%, 5-year bonds for cash proceeds of $182,940. The market interest rate is 6%. Interest is paid semi-annually.

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Definitions:

Third World

Third World is a term originally used to describe nations not aligned with the capitalist NATO bloc or the communist Warsaw Pact during the Cold War, now often referring to developing countries.

CIA

The CIA, or Central Intelligence Agency, is a civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.

Eisenhower Administration

The period of U.S. government from 1953 to 1961 under President Dwight D. Eisenhower, noted for its Cold War tensions and domestic developments.

Third World

A Cold War-era term originally used to describe countries that were neither aligned with NATO (First World) nor the Communist Bloc (Second World), often underdeveloped nations.