Multiple Choice Question 195 When bonds are retired before m

Multiple Choice Question 195

When bonds are retired before maturity,

only a gain on redemption can be recorded.

either a gain or a loss on redemption can be recorded.

neither a gain nor a loss on redemption can be recorded.

only a loss on redemption can be recorded.

Multiple Choice Question 79

Moss County Bank agrees to lend the Crane Company $335000 on January 1. Crane Company signs a $335000, 6%, 9-month note. What entry will Crane Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

Multiple Choice Question 114

The following totals for the month of April were taken from the payroll records of Blossom Company.

The entry to record the payment of net payroll would include a

debit to Salaries and Wages Payable for $85140.

credit to Cash for $106800.

debit to Salaries and Wages Payable for $93420.

debit to Salaries and Wages Payable for $95970

only a gain on redemption can be recorded.

Solution

195 When bonds are retired before maturity,either a gain or a loss on redemption can be recorded. 79 Notes Payable 335000 Interest Payable 15075 =335000*6%/12*9         Cash 350075 114 Salaries and Wages Payable = 141600-10830-29500-5300= $95970 Debit to Salaries and Wages Payable for $95970