Assume the Following Account Balances Immediately After an Interest Payment $$\begin{array} { | l | r | } \hline \text { Bonds Payable } & \$ 200,000 \\\hline \text { Premium on Bonds Payable } & 10,000 \\\hline\end{array}$$

Assume the following account balances immediately after an interest payment date:
$$\begin{array} { | l | r | } \hline \text { Bonds Payable } & \$ 200,000 \\\hline \text { Premium on Bonds Payable } & 10,000 \\\hline\end{array}$$
If the bonds are retired immediately at a total cost of $205,000,the journal entry to record this event is:

A)
$\begin{array}{|l|c|}\hline\text { Cash } & 205,000 \\\hline \text { Loss on Bond Retirement } & 5,000\\\hline \text { Premium on Bonds Payable } & 10,000 \\\hline \text { Bonds Payable } & 200,000\\\hline\end{array}$
B)
$$\begin{array} { | c | l | } \hline \text { Bonds Payable } & 200,000 \\\hline \text { Premium on Bonds Payable } & 10,000 \\\hline \text { Cash } & 205,000 \\\hline \text { Gain on Bond Retirement } & 5,000\\\hline\end{array}$$
C)
$$\begin{array} { | c | l | } \hline \text { Bonds Payable } & 200,000 \\\hline \text { Loss on Bond Retirement } & 10,000 \\\hline \text { Premium on Bonds Payable } &5,000 \\\hline \text { Cash } & 205,000 \\\hline\end{array}$$
D) None of these answers is correct.