Beta Corp Redeems $200,000 (Face Value) of Its Bonds at 99

question 18

Multiple Choice

Beta Corp redeems $200,000 (face value) of its bonds at 99. All entries relating to the bonds have been posted up to date, and the bonds' carrying amount at this time is $204,600. The entry to record the redemption will include a

• A)debit to Cash of $198,000.
• B)debit to Bonds Payable of $200,000.
• C)debit to Bonds Payable of $204,600.
• D)debit to Gain on Redemption of $6,600.

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Definitions:

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