Question
Carr Corporation retires its $300,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at
Carr Corporation retires its $300,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $311,235. The entry to record the redemption will include a
| debit of $15,000 to Premium on Bonds Payable. |
| credit of $3,765 to Gain on Bond Redemption. |
| credit of $11,235 to Loss on Bond Redemption. |
| debit of $11,235 to Premium on Bonds Payable. |
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Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
