The Following Information Was Drawn from the Year-End Balance Sheets

question 39

Multiple Choice

The following information was drawn from the year-end balance sheets of White,Inc. $\begin{array}{l}\begin{array}{|l}\hline\\\hline \text { Bonds payable}\\\hline \text {Common stock}\\\hline \text {Treasury stock}\\\hline \text {Retained earnings}\\\hline\end{array}\begin{array}{|l}\hline 2014 \\\hline \$ 200,000 \\\hline 112,500 \\\hline 17,500 \\\hline 35,000 \\\hline\end{array}\begin{array}{|l|}\hline 2013 \\\hline \$ 275,000 \\\hline 87,500 \\\hline 12,500 \\\hline 27,500 \\\hline\end{array}\end{array}$ White,Inc. ,. ,issued $30,000 in bonds during 2014Year 2.The bonds were issued at face value.All bonds were retired at face value.What is the amount of cash outflow for the payment of bond liabilities?

• A) $75,000
• B) $25,000
• C) $55,000
• D) $105,000

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Definitions:

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