Gester Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of

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Gester Corporation redeems its $100,000 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 $103,745. The entry to record the redemption will include a:

(a) credit of $3,745 to Loss on Bond Redemption.

(b) debit of $3,745 to Premium on Bonds Payable.

(c) credit of $1,255 to Gain on Bond Redemption.

(d) debit of $5,000 to Premium on Bonds Payable.

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Financial Accounting

ISBN: 9781119298229,9781119305842

10th Edition

Authors: Jerry J. Weygandt , Donald E. Kieso , Paul D. Kimmel

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Question Posted: Feb 27, 2024 03:03 AM

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Gester Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of

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Financial Accounting

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