Godwin Corporation retires its bonds at 109 on January 1, after the payment of interest. The face value of the bonds is $620,000. The carrying value of the bonds at retirement is $639,500. The entry to record the retirement will include a:

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Part 1

A.

debit of $55,800 to Premium on Bonds Payable.

B.

credit of $36,300 to Gain on Retirement of Bonds.

C.

credit of $36,300 to Loss on Retirement of Bonds.

D.

debit of $19,500 to Premium on Bonds Payable.