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Question 15 Prior to maturity, Lemon Yellow Company called and retired a $800,000, 8% bond issue at 102. If the unamortized premium on the bonds
Question 15
Prior to maturity, Lemon Yellow Company called and retired a $800,000, 8% bond issue at 102. If the unamortized premium on the bonds is $2,000, the journal entry will include a:
| A. | Debit to loss on bond retirement of $16,000 | |
| B. | Debit to bonds payable for $816,000 | |
| C. | Credit to gain on bond retirement for $16,000 | |
| D. | Debit to premium on bonds payable for $2,000 |
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