Because interest rates have fallen, a company retires bonds which had been issued at their face value of $270,000. The company bought the bonds back at 95.25. The journal entry to record this retirement includes a debit of: Multiple Choice $270,000 to Bonds Payable, a credit of $12,825 to Interest Expense, and a credit of $257,175 to Cash. $257,175 to Bonds Payable, a debit to Gain on Bond Retirement of $12,825 and a credit of $270,000 to Cash. $270,000 to Bonds Payable, a credit of $12,825 to Gain on Bond Retirement, and a credit of $257,175 to Cash. o $257,175 to Bonds Payable and a credit of $257,175 to Cash