A $300,000 Bond Issue with a Carrying Value of $311,000 $\begin{array}{llr} \text { Bonds Payable} &309,000 \\ \text { Cash } &&309,000\\\end{array}$

question 185

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)
• \(\begin{array}{llr}
• \text { Bonds Payable} &309,000 \\
• \text { Cash } &&309,000\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Bonds Payable} &311,000 \\
• \text { Cash } &&311,000\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Cash} &300,000 \\
• \text { Bonds Payable } &&300,000\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Bonds Payable } &300,000\\
• \text { Unamortized Bond Premium} &&11,000\\
• \text {Cash } &&&309,000\\
• \text { Gain on Retirement of Bonds } &&&2,000
• \end{array}\)

---

Definitions:

Capital Account

A national account that shows the net change in asset ownership for a country, including transactions like foreign investments and loans.

Financial Account

A component of a country's balance of payments that records all transactions for investment in foreign assets and liabilities.

Current Account

Part of a country's balance of payments, including the trade balance, net income from abroad, and net current transfers, reflecting the difference between a nation's savings and its investment.

Balance of Payments

This is a record of all financial transactions made between consumers, businesses, and the government in one country with others.