Multiple Choice
A $200,000 bond issue with a carrying value of $206,000 is called at 101 and retired.The entry to record the retirement of bonds would be:
A) Bonds Payable 202,000
Loss on Retirement of Bonds 4,000
Cash 206,000
B) Bonds Payable 200,000
Unamortized Bond Premium 6,000
Cash 202,000
Gain on Retirement of Bonds 4,000
C) Bonds Payable 200,000
Loss on Retirement of Bonds 6,000
Cash 206,000
D) Bonds Payable 206,000
Cash 206,000
Correct Answer:
Verified
Correct Answer:
Verified
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