Lucie Industrial Inc.retires its bonds (par value $100,000) at 105 on January 1 immediately following the payment of semiannual interest.The carrying value of the bonds at retirement date is $103,745.Lucie's journal entry to record the retirement will include a:
A) Credit to Premium on Bonds.
B) Debit to Premium on Bonds.
C) Debit to Discount on Bonds.
D) Credit to Gain on Retirement of Bonds.
E) Credit to Bonds PayablE.
Correct Answer:
Verified
Q82: Amortization of a bond discount:
A) Decreases the
Q82: The Premium on Bonds Payable account is
Q83: Dawson Inc received proceeds of $206,948 on
Q83: Bonds owned by investors whose names and
Q84: The effective interest rate method:
A) Allocates bond
Q87: Willa Inc issued $110,000,9%,5-year bonds.The current market
Q88: Bonds that give the issuer an option
Q110: You graphed bond interest expense and interest
Q117: You graphed the carrying value and par
Q119: A corporation may retire bonds by
A)Exercising a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents