Acme Manufacturing Retired an Issue of Bonds Before They Matured

Multiple Choice

Acme Manufacturing retired an issue of bonds before they matured.The bonds had been issued at their face value of $500,000,and the cash paid for the retirement amounted to $503,250.What journal entry was made to record the bond retirement?

A) Debit Bonds Payable for $500,000,debit Loss on Bond Retirement for $3,250,and credit Cash for $503,250
B) Debit Bonds Payable for $503,250,credit Gain on Bond Retirement for $3,250,and credit Cash for $500,000
C) Debit Bonds Payable and credit Cash for $503,250
D) Debit Bonds Payable for $500,000,debit Gain on Bond Retirement for $3,250,and credit Cash for $503,250