On September 10, 2009, Humbert Company Issued Bonds with a Face

Multiple Choice

On September 10, 2009, Humbert Company issued bonds with a face value of $600,000 for a price of 96. During 2012, Humbert exercised a call provision and redeemed the bonds for 101. At the time of the redemption, the bonds had a balance sheet 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 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.