29/ Clabber Company has bonds outstanding with a par value of $116,000 and a carrying value of $106,900. If the company calls these bonds at a price of $103,000, the gain or loss on retirement is:

Multiple Choice

$13,000 loss.

$9,100 gain.

$3,900 gain.

$9,100 loss.

$3,900 loss.

30/ On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $4,200,000. The bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was $3,914,607. The bond issuance should be recorded as:

Multiple Choice

Debit Cash $4,200,000; credit Bonds Payable $4,200,000.

Debit Cash $3,914,607; credit Bonds Payable $3,914,607.

Debit Cash $4,200,000; credit Bonds Payable $3,914,607; credit Discount on Bonds Payable $285,393.

Debit Cash $3,914,607; debit Discount on Bonds Payable $285,393; credit Bonds Payable $4,200,000.

Debit Cash $3,914,607; debit Interest Expense $285,393; credit Bonds Payable $4,200,000.

31/ A company had net income of $2,690,000, net sales of $25,900,000, and average total assets of $9,800,000. Its return on total assets equals:

Multiple Choice

3.64%.

27.45%.

10.39%.

37.84%.

364.31%.

32/ Marshall Company sold supplies in the amount of 27,000 (euros) to a French company when the exchange rate was $1.23 per euro. At the time of payment, the exchange rate decreased to $.84. Marshall must record a:

Multiple Choice

loss of $22,680.

gain of $10,530.

loss of $10,530.

neither a gain nor loss.

gain of $22,680.