Question $15($Mandatory$)(4$ points$)$

On January $1$ of Year $1,$ Oka Company issued an $$8,000,4\%,3-$year bond. Interest is paid

semiannually each July $1$ and January $1.$ On the day the bond was issued, the market interest rate on

bonds with the same degree of riskiness was $6\%$ compounded annually. The issue price of the bond

was $$7,566\mathrm{.}62.$ This bond was retired at $103$ on July $1$ of Year $1,$ right after the first coupon payment

was made. The entry to record the retirement of this bond would include a:

DEBIT to Loss on Bond Retirement of $$606\mathrm{.}38$

CREDIT to Gain on Bond Retirement of $$229\mathrm{.}01$

DEBIT to Loss on Bond Retirement of $$673\mathrm{.}38$

DEBIT to Loss on Bond Retirement of $$229\mathrm{.}01$

CREDIT to Cash of $$7,633\mathrm{.}62$

DEBIT to Bonds Payable of $$8,000$

DEBIT to Bonds Payable of $$8,240$