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:

Wheat

A staple grain that serves as a primary food source for a large portion of the world's population, used in a variety of products including bread, pasta, and cereal.

Cattle

Domesticated bovine animals raised for their meat (beef), milk, or hides, or as working animals.

Absolute Advantage

The capability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.

Tractors

Heavy vehicles designed for agricultural use, primarily to mechanize farming tasks including plowing, planting, and harvesting.