A Company Has Bonds Outstanding with a Face Value of $100,000.The

question 70

Multiple Choice

A company has bonds outstanding with a face value of $100,000.The unamortized premium on these bonds is $2,700.If the company retired these bonds at a call price of 99,the journal entry to record this retirement includes a debit to:

• A)Bonds Payable for $100,000,a debit to Premium on Bonds Payable for $2,700,a credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $3,700.
• B)Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,700,a credit to Cash for $99,000,and a credit to Premium on Bonds Payable for $2,700.
• C)Bonds Payable for $100,000,credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $1,000.
• D)Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,673,and a credit to Cash for $101,673.

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Definitions:

Motor Skills

The abilities required to control the muscles of the body for movement, including both gross and fine motor skills.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Old Stimulus

A previously encountered stimulus that may trigger a familiar response or behavior due to past experiences.

Existential View

A philosophical stance emphasizing individual freedom, choice, and responsibility, focusing on the search for meaning and dealing with the existential dilemma of human existence.