8) Apple Markets just made the interest payment on its $4,000,000 of outstanding bonds. The bonds are
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Question:
8) Apple Markets just made the interest payment on its $4,000,000 of outstanding bonds. The bonds are callable at 101 5/8 and the unamortized premium is currently $167,400. The entry to retire half of the bonds would include a
A) debit to premium on bonds payable for $167,400.
B) credit to cash for $2,000,000.
C) credit to gain on early extinguishment of debt for $51,200.
D) debit to loss on early extinguishment of debt for $52,500.
E) debit to loss on early extinguishments of debt for $167,400.
Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
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