Reference no: EM132759286

Problem 1: 5000 $100 debentures were redeemed in cash upon maturity at their nominal value. The accounting entry to record the redemption is:

Select one:

a. DR Debentures redemption reserve $500 000; CR Debentures $500 000

b. DR Bank $500 000; CR Debentures $500 000

c. DR Debentures $500 000; CR Bank $500 000

d. DR Debentures $500 000; CR Debentures redemption reserve $500 000

Problem 2: The basic entry to provide for company income tax at the end of the financial year is :

Select one:

a. DR Retained earnings; CR Non-Current tax liability

b. DR Income tax expense; CR Cash at Bank

c. DR Income tax expense; CR Current tax liability

d. DR Current tax liability; CR Income tax expense