Hulse Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest.The carrying value of the bonds at the redemption date is $829,960.The entry to record the redemption will include a
A)credit of $29,960 to Loss on Bond Redemption.
B)debit of $29,960 to Premium on Bonds Payable.
C)credit of $10,040 to Gain on Bond Redemption.
D)debit of $40,000 to Premium on Bonds Payable.

Question

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The Answer of Hulse Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest.The carrying value of the bonds at the redemption date is $829,960.The entry to record the redemption will include a
A)credit of $29,960 to Loss on Bond Redemption.
B)debit of $29,960 to Premium on Bonds Payable.
C)credit of $10,040 to Gain on Bond Redemption.
D)debit of $40,000 to Premium on Bonds Payable.

Hulse Corporation Retires Its $800,000 Face Value Bonds at 105