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The Following Information Was Drawn from the Year-End Balance Sheets

Question 74

Multiple Choice

The following information was drawn from the year-end balance sheets of White,Inc.  Bonds payableCommon stockTreasury stockRetained earnings2014$200,000112,50017,50035,0002013$275,00087,50012,50027,500\begin{array}{l}\begin{array}{|l}\hline\\\hline \text { Bonds payable}\\\hline \text {Common stock}\\\hline \text {Treasury stock}\\\hline \text {Retained earnings}\\\hline\end{array}\begin{array}{|l}\hline 2014 \\\hline \$ 200,000 \\\hline 112,500 \\\hline 17,500 \\\hline 35,000 \\\hline\end{array}\begin{array}{|l|}\hline 2013 \\\hline \$ 275,000 \\\hline 87,500 \\\hline 12,500 \\\hline 27,500 \\\hline\end{array}\end{array} White,Inc. ,. ,issued $30,000 in bonds during 2014Year 2.The bonds were issued at face value.All bonds were retired at face value.What is the amount of cash outflow for the payment of bond liabilities?


A) $75,000
B) $25,000
C) $55,000
D) $105,000

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