A Company Retires Its Bonds with a Face Value of $100,000

Multiple Choice

A company retires its bonds with a face value of $100,000 at 105.The carrying value of the bonds at the retirement date is $103,745.The journal entry to record this retirement will include a:

A) debit to Premium on bonds payable.
B) credit to Gain on bond retirement.
C) credit to Bonds payable.
D) debit to Discount on bonds payable.