Gester Ltd redeems its $100 000 face value debentures at 105 on 31 January, following the payment

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Gester Ltd redeems its $100 000 face value debentures at 105 on 31 January, following the payment of half-yearly interest. The carrying amount of the debentures at the redemption date is $100 000. The entry to record the redemption will include a:

O credit of $3,745 to Loss on Bond Redemption.

O debit of $5,000 to Premium on Bonds Payable.

O debit of $3,745 to Premium on Bonds Payable.

O credit of $1,255 to Gain on Bond Redemption.

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Financial Accounting Reporting Analysis And Decision Making

ISBN: 9780730313748

5th Edition

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

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Posted Date: Sep 24, 2022 08:25 AM

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Gester Ltd redeems its $100 000 face value debentures at 105 on 31 January, following the payment

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Answer O debit of 3745 to Premium on Bonds Payable Prem... View the full answer

Financial Accounting Reporting Analysis And Decision Making

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