Hulse Corporation Retires Its $600,000 Face Value Bonds at 105

question 103

Multiple Choice

Hulse Corporation retires its $600,000 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 $622,470. The entry to record the redemption will include a

• A) credit of $22,470 to Loss on Bond Redemption.
• B) debit of $22,470 to Premium on Bonds Payable.
• C) credit of $7,530 to Gain on Bond Redemption.
• D) debit of $30,000 to Premium on Bonds Payable.

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Definitions:

Adequate

Adequate describes a condition or quality of being sufficient, acceptable, or satisfactory for a specific requirement or purpose.

Explanandum

The phenomenon or event that is to be explained in a scientific inquiry.

Uninformative

Providing no useful or relevant information.

Implausible

Not seeming reasonable or probable; failing to convince.