Using the Following Accounts

question 38

Short Answer

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Retired bonds plus interest previously accrued when the book value was above the cost of retirement, cash was paid.
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:

Selling Price

The amount charged to customers for a product or service, determining the revenue earned by a business.

Contribution Margin Ratio

A financial metric that measures the portion of revenue remaining after variable costs are subtracted, expressed as a percentage of sales.

Budgeted Sales Revenue

Projected income from sales activities over a specific period, as estimated during budgeting.

Break-Even Sales Revenue

The amount of revenue needed to cover all fixed and variable costs of a business.