On January 1,2010,Jacob issues $800,000 of 9%,13-year bonds at a price of 96½.Six years later,on January 1,2016,Jacob retires 20% of these bonds by buying them on the open market at 105½.All interest is accounted for and paid through December 31,2015,the day before the purchase.The straight-line method is used to amortize any bond discount. What is the journal entry to record the retirement of 20% of the bonds on January 1,2016?
A)

\begin{array} { |l | r | r | } \hline \text { Bonds Payable } & 160,000 & \\\hline \text { Cash } & & 156,985 \\\hline \text { Discount on Bonds Payable } & & 3,015 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Bonds Payable } & 160,000 & \\\hline \text { Loss on Retirement } & 11,815 & \\\hline \text { Discount on Bonds Payable } & & 3,015 \\\hline \text { Cash } & & 168,800 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Bonds Payable } & 160,000 & \\\hline \text { Discount on Bonds Payable } & 3,015 & \\\hline \text { Cash } & & 168,800 \\\hline \text { Gain on Retirement } & & 5,785 \\\hline\end{array}

\begin{array} { | l | r | r | } \hline \text { Bonds Payable } & 160,000 & \\\hline \text { Premium on Bonds Payable } & 2,585 & \\\hline \text { Discount on Bonds Payable } & & 3,015 \\\hline \text { Cash } & & 154,400 \\\hline\end{array}

\begin{array} { | c | r | r | } \hline \text { Bonds Payable } & 168,800 & \\\hline \text { Cash } & & 168,800 \\\hline\end{array}

If an Issuer Sells a Bond at Any Other Date

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