Josselle Corporation retires its bonds at 106 on January 1, after the payment of interest.The face value of the bonds is $750,000. The carrying value of the bonds at retirement is$775,600. The entry to record the retirement will include aa. debit of $19,400 to Premium on Bonds Payable.b. credit of $19,400 to Premium on Bonds Payable.c. debit of $25,600 to Premium on Bonds Payable.d. credit of $25,600 to Premium on Bonds Payable.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...
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Josselle Corporation retires its bonds at 106 on January 1, after the payment of interest.
The face value of the bonds is $750,000. The carrying value of the bonds at retirement is
$775,600. The entry to record the retirement will include a
a. debit of $19,400 to Premium on Bonds Payable.
b. credit of $19,400 to Premium on Bonds Payable.
c. debit of $25,600 to Premium on Bonds Payable.
d. credit of $25,600 to Premium on Bonds Payable.

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