Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of
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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.AppendixLO2
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Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso
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