Question
Tamatha Corporation retires its bonds at 110 on January1, after the payment of interest. The face value of the bonds is $720,000. The carrying value
Tamatha Corporation retires its bonds at 110 on January1, after the payment of interest. The face value of the bonds is $720,000. The carrying value of the bonds at retirement is $741,600. The entry to record the retirement will include a:
A. credit of $21,600 to Premium on Bonds Payable.
B. credit of $50,400 to Premium on Bonds Payable.
C. debit of $21,600 to Premium on Bonds Payable.
D. debit of $50,400 to Premium on Bonds Payable.
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
