On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 20 year term and a stated rate of interest of 7%. Which of the following shows how the payoff of the bond liability will affect Residence's financial statements on December 31, Year 20 (the maturity date)? A. B. C. D. Balance Sheet Assets = Liabilities + NA = + = + ΝΑ 50,000 = (50,000) = ΝΑ ΝΑ 50,000 (50,000) + + Multiple Choice O Option A O Option B Option C Option D Equity ΝΑ ΝΑ ΝΑ ΝΑ Revenues ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expenses = |||| Expenses Net Income ΝΑ ΝΑ ΝΑ ΝΑ ||||||||| = ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows (50,000) IA (50,000) IFA 50,000 IA (50,000) FA

On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 20 year term and a stated rate of interest of 7%. Which of the following shows how the payoff of the bond liability will affect Residence's financial statements on December 31, Year 20 (the maturity date)? A. B. C. D. Balance Sheet Assets = Liabilities + NA = + = + ΝΑ 50,000 = (50,000) = ΝΑ ΝΑ 50,000 (50,000) + + Multiple Choice O Option A O Option B Option C Option D Equity ΝΑ ΝΑ ΝΑ ΝΑ Revenues ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expenses = |||| Expenses Net Income ΝΑ ΝΑ ΝΑ ΝΑ ||||||||| = ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows (50,000) IA (50,000) IFA 50,000 IA (50,000) FA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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