Assessment 5: On January 1, Year 1 Residence Company... 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)? Balance Sheet Assets Liab. A. NA NA + B. NA NA + 50,000 50,000 + D. (50,000) - (50,000) Equity NA NA NA NA Rev. NA NA NA NA Income Statement - Exp. Net Inc. NA NA - NA NA NA NA NA NA Statement of Cash Flows (50,000) IA (50,000) PA 50,000 TA (50,000) PA Multiple Choice