On September 10, 2016, Humbert Company issued bonds with a face value of $600,000 for a price of 96. During 2017, Humbert exercised a call provision and redeemed the bonds for 101. At the time of the redemption, the bonds had a book value of $590,000. The journal entry to record the redemption includes:

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DThe journal entry to record the redemption of the bonds includes a debit to Loss on Bond Redemption for the difference between the redemption price and the book value of the bonds, which is $16,000 ($606,000 redemption price - $590,000 book value). It also includes a debit to Discount on Bonds Payable to remove the remaining discount from the books, which is $10,000 ($600,000 face value - $590,000 book value).

On September 10, 2016, Humbert Company Issued Bonds with a Face