10 Saved Help Save Because interest rates have fallen, a company retires bonds which had been issued at their face value of $390,000. The company bought the bone back at 9475. The Journal entry to record this retirement includes a debit of: Multiple Choice $390,000 to Bonds Payable, a credit of $20,475 to Interest Expense, and a credit of $369,525 to Cash O $300.525 to Bonds Payable, a debit to Gain on Bond Retrement of $20,475 and a credit of $390,000 to Cash $300,000 to Bonds Payable, a credit of $20.475 to Gain on Bond Retirement, and a credit of $369,525 to Cash S525 to Bonds Payable and a credit of $363.525 to Cash M