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On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $326,000 for its outstanding bonds that have a carrying value of

On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $326,000 for its outstanding bonds that have a carrying value of $330,000 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following? Multiple Choice Credit to Gain on Retirement of Bonds of $4,000. Debit to Bonds Payable $310,000. Credit to Cash of $326,000. Debit to Premium on Bonds Payable $20,000. Debit to Bonds Payable $326,000

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