Question 9 Hoffman Corporation retires its bonds at 106 on January 1, following the payment of annual interest. The The entry to record the redemption will include a O credit of $19,800 to Loss on Bond Redemption. O debit of $24,000 to Premium on Bonds Payable. O credit of $4,200 to Gain on Bond Redemption. debit of $19,800 to Premium on Bonds Payable. ment of annual interest. The face value of the bonds is $400,000. The carrying value of the bonds at the redemption date is $419,800