Using the Following Accounts

question 90

Short Answer

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transactions.
-Deposited cash in a bond sinking fund.
Debit ________ Credit ________
A)Cash
B)Bond Sinking fund
C)Equipment
D)Building
E)Land
F)Accounts payable
G)Notes payable
H)Bond payable
I)Bond interest payable
J)Premium on bonds payable
K)Discount on bonds payable
L)Common stock
M)Retained earnings
N)Sinking fund earned
O)Bond interest expense
P)Gain on retirement
Q)Loss on retirement

• A)Cash
• B)Bond Sinking fund
• C)Equipment
• D)Building
• E)Land
• F)Accounts payable
• G)Notes payable
• H)Bond payable
• I)Bond interest payable
• J)Premium on bonds payable
• K)Discount on bonds payable
• L)Common stock
• M)Retained earnings
• N)Sinking fund earned
• O)Bond interest expense
• P)Gain on retirement
• Q)Loss on retirement

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Definitions:

On Approval

A conditional agreement for the sale of goods where the buyer is not obligated to complete the purchase unless they approve of the goods.

Risk of Loss

The responsibility for damage or loss of goods during a transaction or while in transit.

Inspected

Examination or review of a condition or situation, often for compliance or quality control.

Delivery

The act of transferring possession of a good or document from one party to another, fulfilling a contractual obligation.