A $200,000 Bond Issue with a Carrying Value of $194,000 $\begin{array}{llr} \text { Bonds Payable } &200,000\\ \text { Gain on Retirement of Bonds} &&6,000\\ \text { Cash } &&194,000\end{array}$

question 83

Multiple Choice

A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired.The entry to record the retirement of bonds would be:

• A)
• \(\begin{array}{llr}
• \text { Bonds Payable } &200,000\\
• \text { Gain on Retirement of Bonds} &&6,000\\
• \text { Cash } &&194,000
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text {Bonds Payable } &200,000\\
• \text { Cash} &&200,000\\
• \end{array}\)
• C)
• \(\begin{array} { l c r }
• \text { Bonds Payable } & 200,000\\
• \text { Loss on Retirement of Bonds } & 8,000 \\
• \quad \text { Unamortized Bond Discount } && 6,000 \\
• \text { Cash } && 202,000
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Bonds Payable } &194,000\\
• \text { Loss on Retirement of Bonds } &&8,000\\
• \text { Cash } &&&202,000
• \end{array}\)

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Definitions:

Services Performed

Refers to the completed tasks or provided services by a company or individual for which payment is due.

Supplies Withdrawal

The act of taking out supplies from inventory for use, typically recorded as an expense when they are used rather than when purchased.

Increases and Decreases

Terms referring to the changes in financial statement amounts from one period to another, affecting assets, liabilities, revenues, and expenses.

Types of Accounts

Categories into which financial transactions are grouped in accounting, such as assets, liabilities, equity, revenue, and expenses.