Hooper Corporation Has Bonds Outstanding with a Face Value of $100,000

question 185

Multiple Choice

Hooper Corporation has bonds outstanding with a face value of $100,000 and a carrying value of $103,000 on December 31, 2010. If the company calls in and retires these bonds on December 31, 2010, for $105,000, the entry to record the retirement will include a

• A) debit to Bonds Payable for $103,000.
• B) credit to Cash for $103,000.
• C) debit to Loss on Retirement of Bonds for $3,000.
• D) debit to Loss on Retirement of Bonds for $2,000.

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Definitions:

Financing

involves providing funds for business activities, making purchases, or investing.

Small Business Development Centres

Organizations that provide support and resources to small businesses to help them grow and succeed.

U.S. Small Business Administration

A government agency that provides support to entrepreneurs and small businesses through loans, grants, and resource guidance.

Birth Stage

The initial phase of a product, business, or industry's lifecycle, characterized by development and introduction to the market.