A Company Retires Its Bonds with a Face Value of $100,000

question 12

Multiple Choice

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.

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Definitions:

Twentieth Century

The era spanning from January 1, 1901, to December 31, 2000, marked by significant technological, social, and political changes.

Agricultural Technologies

Innovations and technologies developed to improve efficiency, productivity, and sustainability in agriculture.

Productivity Per Acre

The measure of output (such as crops) produced per acre of land.

Farmland

Land used for farming purposes to grow crops and rear animals, constituting a primary resource for agricultural activities and food production.