Using the Following Accounts

question 102

Short Answer

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Paid the bondholders the amount due, face value plus accrued interest, using the sinking fund.
Debit ________ & ________ Credit ________
A)Cash
B)Bond Sinking fund
C)Equipment
D)Building
E)Land
F)Accounts payable
G)Notes payable
H)Bond payable
I)Bond interest payable
J)Premium on bonds payable
K)Discount on bonds payable
L)Common stock
M)Retained earnings
N)Sinking fund earned
O)Bond interest expense
P)Gain on retirement
Q)Loss on retirement

• A)Cash
• B)Bond Sinking fund
• C)Equipment
• D)Building
• E)Land
• F)Accounts payable
• G)Notes payable
• H)Bond payable
• I)Bond interest payable
• J)Premium on bonds payable
• K)Discount on bonds payable
• L)Common stock
• M)Retained earnings
• N)Sinking fund earned
• O)Bond interest expense
• P)Gain on retirement
• Q)Loss on retirement

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a set activity measure.

Raw Materials

Basic materials that are used in the production process to manufacture finished goods.

Finished Goods

Finished goods awaiting sale and not yet delivered to end-users.

Work in Process Inventory

Represents the total cost of unfinished goods currently being manufactured.