A Company Has Bonds Outstanding with a Face Value of $100,000.The

Multiple Choice

A company has bonds outstanding with a face value of $100,000.The unamortized premium on these bonds is $2,700.If the company retired these bonds at a call price of 99,the journal entry to record this retirement includes a debit to:

A) Bonds Payable for $100,000,a debit to Premium on Bonds Payable for $2,700,a credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $3,700.
B) Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,700,a credit to Cash for $99,000,and a credit to Premium on Bonds Payable for $2,700.
C) Bonds Payable for $100,000,credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $1,000.
D) Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,673,and a credit to Cash for $101,673.