ACC12 HW4 Ch15 S-2018 d. loss is debited to Interest Expense, as a cost of financing 9. A $600,000 bond was retired at 98 when the carrying value of the bond was S The entry to record the retirement would include a a gain on bond redemption of $10,000. b. loss on bond redemption of $10,000 . loss on bond redemption of $2,000. d gain on band redemption of $2,000. 10 A $1,000 face value bond with a quoted price of 98 is selling for a $1,000 b $980. c $908. d $98 11. Premium on Bonds Payable a has a debit balance. b is a contra account c. is considered to be a reduction in the cost of borrowing c. d. is deducted from bonds payable on the balance sheet. 12. Each of the following accounts is reported as long-term liabilities except a. Interest Payable b. Bonds Payable. c. Discount on Bonds Payable. d. Premium on Bonds Payable. 13. In the balance sheet, the account, Premium on Bonds Payable, is a. added to bonds payable. b. deducted from bonds payable