When a Bond Issued at Face Value Is Retired,the Journal

question 69

Multiple Choice

When a bond issued at face value is retired,the journal entry is:

• A)debit Bond Interest Expense,credit Cash.
• B)debit Bonds Payable,credit Cash.
• C)debit Cash,credit Bonds Payable.
• D)debit Cash,credit Bond Interest Expense.

---

Definitions:

Profit-Maximizing

The process or strategy of setting prices or production levels to achieve the highest possible profit.

ATC

Average Total Cost, calculated by dividing total cost by the quantity of output produced.

Profit-Maximizing

A strategy or level of production where a firm makes the highest possible profit.

Firm

A business organization, such as a corporation, limited liability company, partnership, or sole proprietorship, that sells goods or services.