Multiple Choice
Alimentation Deslauriers has a $100,000 bond outstanding with an unamortized discount of $5,679. The company has decided to retire the bonds for a cost of $103,000. The journal entry to record the retirement of the banks will include which of the following?
A) Loss on redemption of bonds, $5,679.
B) Loss on redemption of bonds, $8,679
C) Gain on redemption of bonds, $5,679.
D) Gain on redemption of bonds, $8,679
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If bonds have been issued at a
Q2: When the effective (market) interest rate is
Q4: A long-term note payable is often secured
Q5: If a bond has a face value
Q6: Bonds issued at a premium reduce:<br>A) the
Q7: The carrying amount of a bond is
Q8: A bond issue is a form of<br>A)
Q10: If the market interest rate is higher
Q11: If a bond payable is sold (issued)
Q96: Interest expense on a note payable is