A $50,000 Bond Issue with a Carrying Value of $47,000

question 77

Multiple Choice

A $50,000 bond issue with a carrying value of $47,000 is called at 102 and retired.The entry to record the retirement of bonds would be:

• A)
• \(\begin{array} { l r r }
• \text { Bonds Payable } & 50,000 & \\
• \text { Loss on Retirement of Bonds } & 4,000 & \\
• \quad \text { Unamortized Bond Discount } & & 3,000 \\
• \quad \text { Cash } && 51,000
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text { Bonds Payable }&47,000 \\
• \text { Cash }&&47,000
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Bonds Payable} &50,000\\
• \text { Gain on Retirement of Bonds } &&3,000\\
• \text { Cash} &&47,000
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Bonds Payable } & 50,000 \\
• \text { Loss on Retirement of Bonds } & 1,000 \\
• \quad \text { Cash } &&51,000
• \end{array}\)

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