Exhibit 14-12 On January 1, 2016, Jewels, Inc. Sold $200,000 of Its

Exhibit 14-12
On January 1, 2016, Jewels, Inc. sold $200,000 of its 12% five-year bonds to yield 10%. Interest is paid each January 1 and July 1, and effective interest amortization is used. On May 1, 2018, Jewels, retired $100,000 of the bonds at 104. The book value of the bonds on December 31, 2017, was $212,926.
-Refer to Exhibit 14-12. The entry to record the retirement in May, 2018 would include a

A) credit to Cash for $104,000.
B) debit to Interest Expense for $8,000.
C) credit to Premium on Bonds Payable for $12,926.
D) debit to Loss on Bond Retirement for $4,024 rounded) .