Check Figures: Net Income $7,846 Total Assets $443,834 The first transaction is the issuance of a bond. A bond is where Gotham gets cash and promises to repay some amount in the future with interest along the way. You will not be asked about a bond on the exam. The journal entry for this bond should be: DR. Cash 95,788 DR. Discount on Bond 4,212 CR. Bond Payable 100,000 There is no adjusting entry for the bond. There is no income statement impact for the bond. The balance sheet presentation of the bond is: Liabilities: Bond Payable. 100,000 Discount (4.212) Book Value of Bond 95,788 Question 1 2.5 pts What is the balance of Retained Earnings on the Balance Sheet for March for Gotham? O 35,196 27,350 O 25,000 18,350 Question 2 2.5 pts When closing income statement accounts (revenues and expenses), which account increases or decreases by the amount of net income (loss)? O retained earnings assets O net income O cash