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) Credit to Gain on Bond Retirement.
B) Credit to Bonds Payable.
C) Debit to Premium on Bonds.
D) Debit to Discount on Bonds.
E) Credit to Premium on Bonds.
Correct Answer:
Verified
Q132: A company may retire bonds by all
Q133: A company received cash proceeds of $206,948
Q134: A corporation issued 8% bonds with a
Q135: The market value (price) of a bond
Q136: The Premium on Bonds Payable account is
Q138: A company issued 5-year, 7% bonds with
Q139: Clabber Company has bonds outstanding with a
Q140: Adonis Corporation issued 10-year, 8% bonds with
Q141: On January 1, a company issues bonds
Q142: On July 1, Shady Creek Resort borrowed
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