A $300,000 Bond Issue with a Carrying Value of $311,000

question 22

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 is:

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Definitions:

Net Operating Income

Income from a company's operations, calculated by subtracting operating expenses from operating revenue, excluding income and expenses from non-operating activities.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the efficiency of a company in managing its production and labor costs.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest, providing a measure of profitability from its core business activities.

Variable Costing

An accounting method in which variable production costs are included in product costs, while fixed overhead costs are treated as period expenses.