A $300,000 Bond Issue with a Carrying Value of $311,000 $\begin{array}{llr} \text {Bonds Payable } &309,000\\ \text { Cash } &&309,000\\\end{array}$

question 101

Multiple Choice

A $300,000 bond issue with a carrying value of $311,000 is called at 103 and retired.The entry to record the retirement of bonds would be:

• A)
• \(\begin{array}{llr}
• \text {Bonds Payable } &309,000\\
• \text { Cash } &&309,000\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Bonds Payable } &311,000\\
• \text { Cash} & &311,000\\
• \end{array}\)
• C)
• \(\begin{array}{ll}
• \text { Cash } & 300,000 \\
• \text { Bonds Payable }&& 300,000
• \end{array}\)
• D)
• Bonds Payable \(\quad 300,000\)
• Unamortized Bond Premium \(\quad 11,000\)
• \(\begin{array} { l r } \text { Cash } & 309,000 \\ \text { Gain on Retirement of Bonds } & 2,000 \end{array}\)

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