Goethe Corporation redeems its ($ 100,000) face value bonds at 105 on January 1, following the payment
Question:
Goethe Corporation redeems its \(\$ 100,000\) face value bonds at 105 on January 1, following the payment of 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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Related Book For 
Accounting Tools For Business Decision Making
ISBN: 9781119191674
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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