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219

question 206

Multiple Choice

219. Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $312,000 and uses annual straight-line amortization. <sup> </sup>219. Presented here is a partial amortization schedule for Roseland Company who sold $300,000, five year 10% bonds on January 1, 2014 for $312,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (ii) ? A) $32,400 B) $27,600 C) $31,200 D) $28,800 Which of the following amounts should be shown in cell (ii) ?

Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Sales on Account

Transactions where goods or services are delivered with payment to be made at a later date, typically recorded as accounts receivable.

Inventory Turnover

A financial ratio indicating how many times a company's inventory is sold and replaced over a period, illustrating the company's efficiency in managing and selling its stock.

Cost of Goods Sold

The immediate expenses related to producing the goods that a company sells, which involve both materials and labor.