Question

A company retires its bonds with a face value of $100,000 at 105. The carrying value of the bonds at the retirement date is $103,745. The journal entry to record this retirement will include a:

A) debit to Premium on Bonds Payable.

B) credit to Gain on Bond Retirement.

C) credit to Bonds Payable.

D) debit to Discount on Bonds Payable.

Answer

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