maliyah7516
10.11.2020 •
Business
In 2005, ABC Company issued $100,000 of 20-year bonds at face value. Ten years later, in 2015, the company retired the bonds early by purchasing them in the open market at $101,000. The entry to record this transaction includes a:
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Ответ:
b. debit to Loss on Bond Retirement of $1,000.
Explanation:
Options are " A. credit to Gain on Bond Retirement of $1,000. B. debit to Loss on Bond Retirement of $1,000. C. debit to Bonds Payable of $101,000. D. credit to Cash of $100,000."
When a bond is retired before maturity a gain or loss may arise. In such case if the price paid to retire the bonds is greater the carrying amount of bonds then the company need to record a loss on retirement in the book. On the other hand if the price paid is less than the carrying amount of the bonds at retirement, then the company records a gain on retirement of bonds.
Ответ:
Business and consumer goods .
Explanation: Products are classified as either business or consumer goods, based on where the product is going to be used. Some of the mailboxes are sold for business use and some for personal use which would be part of the consumer market.