10) Given the following Bond Amortization Table, answer the multiple choice question belowthe Table.InterestUnamortizedDATEPMTExpenseAmortization Amortization Carrying Value1/1/2018$45,242 $654,7586/30/2018 $ 28,000 $12/31/2018 $ 28,000 $6/30/2019 $ 28,000 $12/31/2019 $ 28,000 $6/30/2020 $ 28,000 $40,505 $35,530 $32,738 $4,738 $659,4954,975 $5,224 $32,975 $664,47033,224 $33,485 $30,306 $669,6945,485 $24,822 $675,17833,759 $5,759 $19,063 $680,93734,047 $34,349 $13,016 $6,667 $0.00 $12/31/2020 $ 28,000 $6,047 $686,9846/30/2021 $ 28,000 $6,349 $693,33312/31/2021 $ 28,000 $34,667 $6,667 $700,000Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entryon January 1, 2021 would show:A. Credit to Discount on Bond Payable in the amount of $3,016B. Debit to Discount on Bond Payable in the amount of $3,016C. Gain in the amount of $3,016D. Loss in the amount of $3,016

10) Given the following Bond Amortization Table, answer the multiple choice question below the Table. Interest Unamortized DATE PMT Expense Amortization Amortization Carrying Value 1/1/2018 6/30/2018 $ 28,000 $ 12/31/2018 $ 28,000 $ 45,242 $ 654,758 32,738 $ 32,975 $ 4,738 $ 40,505 $ 659,495 35,530 $ 30,306 $ 4,975 $ 664,470 6/30/2019 $ 28,000 $ 33,224 $ 5,224 $ 5,485 $ 669,694 12/31/2019 $ 28,000 $ 6/30/2020 $ 28,000 $ 12/31/2020 $ 28,000 $ 33,485 $ 24,822 $ 675,178 33,759 $ 5,759 $ 19,063 $ 680,937 6,047 $ 6,349 $ 34,047 $ 13,016 $ 686,984 34,349 $ 34,667 $ 6,667 $ 0.00 $ 6/30/2021 $ 28,000 $ 693,333 12/31/2021 $ 28,000 $ 6,667 $ 700,000 Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entry on January 1, 2021 would show: A. Credit to Discount on Bond Payable in the amount of $3,016 B. Debit to Discount on Bond Payable in the amount of $3,016 C. Gain in the amount of $3,016 D. Loss in the amount of $3,016

10) Given the following Bond Amortization Table, answer the multiple choice question below the Table. Interest Unamortized DATE PMT Expense Amortization Amortization Carrying Value 1/1/2018 6/30/2018 $ 28,000 $ 12/31/2018 $ 28,000 $ 45,242 $ 654,758 32,738 $ 32,975 $ 4,738 $ 40,505 $ 659,495 35,530 $ 30,306 $ 4,975 $ 664,470 6/30/2019 $ 28,000 $ 33,224 $ 5,224 $ 5,485 $ 669,694 12/31/2019 $ 28,000 $ 6/30/2020 $ 28,000 $ 12/31/2020 $ 28,000 $ 33,485 $ 24,822 $ 675,178 33,759 $ 5,759 $ 19,063 $ 680,937 6,047 $ 6,349 $ 34,047 $ 13,016 $ 686,984 34,349 $ 34,667 $ 6,667 $ 0.00 $ 6/30/2021 $ 28,000 $ 693,333 12/31/2021 $ 28,000 $ 6,667 $ 700,000 Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entry on January 1, 2021 would show: A. Credit to Discount on Bond Payable in the amount of $3,016 B. Debit to Discount on Bond Payable in the amount of $3,016 C. Gain in the amount of $3,016 D. Loss in the amount of $3,016

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 95PSA

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