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Nashville Rail Co. issued $100,000 in 10-year bonds in 2009 at 103. The final interest payment was made and recorded. What entry will Nashville record

Nashville Rail Co. issued $100,000 in 10-year bonds in 2009 at 103. The final interest payment was made and recorded. What entry will Nashville record for the redemption of its bonds at maturity?

Bonds Payable 100,000
Cash 100,000
Bonds Payable 103,000
Gain on Bonds Redemption 3,000
Cash 100,000
Bonds Payable 103,000
Premium on Bonds Payable 3,000
Cash 100,000
Bonds Payable 103,000
Cash 103,000

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