"Proceeds" from the sale of bonds represent a.the amount compared to the book (cost) value of...
"Proceeds" from the sale of bonds represent
a.the amount compared to the book (cost) value of the bonds to determine the gain or loss on the sale.
b.the face amount of the bond times the quoted sale percentage.
c.the amount of the debit to Cash in the journal entry recording the sale.
d.All of these choices are correct.
Homework Answers
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| "Proceeds" from the sale of bonds represent | |
| d. All of these choices are correct. | |
| Because, | |
| Sale proceeds are compared with the cos of bonds to calculated loss or gain on sale. | Option A. |
| Sale proceeds can be calculate as a % of the face amount of bond if available. | Option B. |
| And it is obvious that cash is debited at the time of sale. | Option C. |
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