A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:
A)Debit to Premium on Bonds $3,745.
B)Credit to Premium on Bonds $3,745.
C)Debit to Discount on Bonds $5,000.
D)Credit to Gain on Bond Retirement $1,255.
E)Credit to Bonds Payable $100,000.

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The Answer of A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:
A)Debit to Premium on Bonds $3,745.
B)Credit to Premium on Bonds $3,745.
C)Debit to Discount on Bonds $5,000.
D)Credit to Gain on Bond Retirement $1,255.
E)Credit to Bonds Payable $100,000.

A Company Retires Its Bonds at 105