Multiple Choice
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:
A) a credit to Bonds Payable for $576,000.
B) a debit to Loss on Bond Redemption for $16,000.
C) a credit to Discount on Bonds for $24,000.
D) a debit to Discount on Bonds Payable for $10,000.
Correct Answer:
Verified
Correct Answer:
Verified
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