Question
Kant Corporation retires its 100,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at
Kant Corporation retires its 100,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is 96,250. The entry to record the redemption will include a
a. credit of 96,250 to Cash.
b. debit of 96,250 to Bonds Payable.
c. credit of 3,750 to Gain on Extinguishment of Debt.
d. debit of 3,750 to Bonds Payable.
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Auditing A Business Risk Approach
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
8th edition
538476230, 978-0538476232
