On October 15,2013,Rural Sales Has a Bond with Balances as Shown

question 90

Multiple Choice

On October 15,2013,Rural Sales has a bond with balances as shown below. If Rural Sales wishes to retire the bonds for $82,000,what will be the effect on the income statement?

• A) Gain on retirement of $2,600
• B) Loss on retirement of $2,600
• C) Gain on retirement of $2,000
• D) Loss on retirement of $2,000

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Definitions:

Credit Balance

The amount of money in a financial account that the account holder can claim, representing a surplus of payments over charges.

Pegboard System

An organizational tool consisting of a board with holes into which pegs are placed to hang tools, keys, or other items, often used in retail or workshop settings.

Daily Entries

Regular, often daily, written records or notations of events, transactions, observations or personal reflections.

Financial Record

A financial record is documentation of financial transactions and positions of an individual or organization, essential for financial management and accountability.