Multiple Choice
Cerner Industrial Inc.retires its bonds (par value $100,000) at 105 on January 1 immediately following the payment of semiannual interest.The carrying value of the bonds at retirement date is $103,745.Cerner's journal entry to record the retirement will include a
A) Credit to Premium on Bonds
B) Debit to Premium on Bonds
C) Debit to Discount on Bonds
D) Credit to Gain on Retirement of Bonds
E) Credit to Bonds Payable
Correct Answer:
Verified
Correct Answer:
Verified
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