Wittebury Corporation Retires Its £3,000,000 Face Value Bonds at 105

question 81

Multiple Choice

Wittebury Corporation retires its £3,000,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $3,112,350. The entry to record the redemption will include

• A) a credit of £37,650 to Gain on Bond Redemption.
• B) a debit of £37,650 to Loss on Bond Redemption.
• C) a credit of £15,000 to Bonds Payable.
• D) a credit of £37,650 to Bonds Payable.

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Definitions:

Eighteenth-Century

The period from 1701 to 1800 in the Gregorian calendar, marked by significant historical, cultural, and scientific developments.

British America

Historically refers to the territories under British rule in the Americas from the 16th to the early 20th centuries, including the Thirteen Colonies.

South Carolina's

Pertaining to the state of South Carolina, its history, people, politics, or geographical characteristics.

Stono Rebellion

A slave uprising in 1739 in South Carolina that led to a severe tightening of the slave code and the temporary imposition of a prohibitive tax on imported slaves.