Multiple Choice
A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:
A) Debit to Premium on Bonds $3,745.
B) Credit to Premium on Bonds $3,745.
C) Debit to Discount on Bonds $5,000.
D) Credit to Gain on Bond Retirement $1,255.
E) Credit to Bonds Payable $100,000.
Correct Answer:
Verified
Correct Answer:
Verified
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