Lark Corporation retires its $800,000 face value bonds at 105 on January 1, following thepayment of annual interest. The carrying value of the bonds at the redemption date is$829,960. The entry to record the redemption will include a
a.credit of $10,040 to Loss on Bond Redemption.

b.debit of $10,040 to Loss on Bond Redemption.

c.debit of $40,000 to Premium on Bonds Payable.

d.credit of $10,040 to Premium on Bonds Payable

Answer rating: 100% (QA)

The entry to record the retirement of bonds at a premium inv... View the full answer