On January 1 of Year 1, M&M issued a $200,000, 10%, 20-year bond for $239,273. Interest is paid annually each December 31. This bond was retired on January 1 of Year 3, just one day after the second cash interest payment was made. At that time, the outstanding value of the bond was $237,488. The total amount paid to retire this bond was $230,000. The entry to record the retirement of this bond would include a

CREDIT to Bonds Payable of $200,000

DEBIT to Premium on Bonds of $7,488

CREDIT to Premium on Bonds of $7,488

DEBIT to Loss on Bond Retirement of $7,488

DEBIT to Premium on Bonds of $39,273

CREDIT to Gain on Bond Retirement of $7,488

CREDIT to Premium on Bonds of $39,273

DEBIT to Bonds Payable of $237,488