Because interest rates have fallen, a company retires bonds which had been issued at their face value of $330,000. The company bought the bonds back at 96.25. The journal entry to record this retirement includes a debit of. 50 Multiple Choice $317,625 to Bonds Payable, a debit to Gain on Bond Retirement of $12.375 and a credit of $330,000 to Cash $330,000 to Bonds Payable, a credit of $12,375 to Gain on Bond Retirement, and a credit of $317,625 to Cash $317,625 to Bonds Payable and a credit of $317,625 to Cash. $330,000 to Bonds Payable, a credit of $12,375 to Interest Expense, and a credit of $317,625 to Cash