Exhibit 14-7 on January 1, 2010, Bubbles, Inc

Exhibit 14-7 On January 1, 2010, Bubbles, Inc.sold $200, 000 of its 12% five-year bonds to yield 10%.Interest is paid each January 1 and July 1, and effective interest amortization is used.On May 1, 2012, Bubbles, retired $100, 000 of the bonds at 104.The book value of the bonds on December 31, 2011, was $212, 926.
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Refer to Exhibit 14-7.The entry to record the retirement would include a

A) credit to Cash for $108, 000
B) credit to Interest Payable for $4, 000
C) debit to Premium on Bonds Payable for $12, 024
D) debit to Loss on Bond Retirement for $2, 012

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