No Fault Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1. What amount should No Fault report as a current liability for Uncarned Insurance Premiums at December 31? (a) $0. (b) $4,500 (c) $13 500. (d) $18,000. ANSWER (b) $4,500 $ 18,000 12 Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: (a) credit of S3,745 to Loss on Bond Redemption. (b) debit of $3.745 to Premium on Bonds Payable (c) credit of S1,255 to Gain on Bond Redemption (d) debit of $5,000 to Premium on Bonds Payable. | ANSWER (b) debit of $3,745 to Premium on Bonds Payable S 103,745-$ 100,000)