A $300,000 Bond Issue with a Carrying Value of $311,000

question 82

Multiple Choice

A $300,000 bond issue with a carrying value of $311,000 is called at 103 and retired.The entry to record the retirement of bonds would be:

• A) Bonds Payable 309,000
• Cash 309,000
• B) Bonds Payable 311,000
• Cash 311,000
• C) Cash 300,000
• Bonds Payable 300,000
• D) Bonds Payable 300,000
• Unamortized Bond Premium 11,000
• Cash 309,000
• Gain on Retirement of Bonds 2,000

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Definitions:

Abyssal Plane

A flat, almost level area of the deep ocean floor, usually lying at depths between 3,000 and 6,000 meters.

Seismic-Reflection Profiling

A geophysical method used to explore subsurface structures by sending sound waves into the ground and analyzing the reflected waves to map geological features.

Seismic-Reflection Profile

A cross section plotting data gathered from a seismic-reflection survey.

Continental Shelf

The extended perimeter of each continent, which is submerged under relatively shallow sea before dropping into the deep ocean.