Gester Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of

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Gester Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of semiannual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a:

(a) credit of $3,745 to Loss on Bond Redemption.

(b) debit of $3,745 to Premium on Bonds Payable.

(c) credit of $1,255 to Gain on Bond Redemption.

(d) debit of $5,000 to Premium on Bonds Payable.

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Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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Question Posted: Feb 15, 2024 09:00 AM

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Gester Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of

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Financial And Managerial Accounting

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