Question
Sheridan Company retires its $380000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at
Sheridan Company retires its $380000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $394231. The entry to record the redemption will include a
a. debit of $19000 to Premium on Bonds Payable.
b. credit of $4769 to Gain on Bond Redemption.
c. credit of $14231 to Loss on Bond Redemption.
d. debit of $14231 to Premium on Bonds Payable.
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Introductory Accounting Finance And Auditing For Lawyers
Authors: Lawrence Cunningham
7th Edition
1634604105, 9781634604109
