At the end of the current year, the bond accounts of Hobeen Services showed the following balances: Bonds Payable $60,000 credit balance 3,100 debit balance Discount on Bonds Payable The bonds were retired early for $54,500. What is the journal entry to record the retirement of the bonds? Cash 54,500 8,600 Loss on Retirement of Bonds Payable Discount on Bonds Payable Bonds Payable O Bonds Payable Discount on Bonds Payable Gain on Retirement of Bonds Payable 60,000 3,100 60,000 3,100 2,400
At the end of the current year, the bond accounts of Hobeen Services showed the following balances: Bonds Payable $60,000 credit balance 3,100 debit balance Discount on Bonds Payable The bonds were retired early for $54,500. What is the journal entry to record the retirement of the bonds? Cash 54,500 8,600 Loss on Retirement of Bonds Payable Discount on Bonds Payable Bonds Payable O Bonds Payable Discount on Bonds Payable Gain on Retirement of Bonds Payable 60,000 3,100 60,000 3,100 2,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
3. Help me selecting the right answer. Thank you
Transcribed Image Text:At the end of the current year, the bond accounts of Hobeen Services showed the following balances:
- **Bonds Payable:** $60,000 credit balance
- **Discount on Bonds Payable:** $3,100 debit balance
The bonds were retired early for $54,500. What is the journal entry to record the retirement of the bonds?
**Options:**
1. **Option A:**
- Cash: 54,500
- Loss on Retirement of Bonds Payable: 8,600
- Discount on Bonds Payable: 3,100
- Bonds Payable: 60,000
2. **Option B:**
- Bonds Payable: 60,000
- Discount on Bonds Payable: 3,100
- Gain on Retirement of Bonds Payable: 2,400
- Cash: 54,500
3. **Option C:**
- Cash: 54,500
- Discount on Bonds Payable: 3,100
- Loss on Retirement of Bonds Payable: 2,400
- Bonds Payable: 60,000
4. **Option D:**
- Bonds Payable: 60,000
- Discount on Bonds Payable: 3,100
- Gain on Retirement of Bonds Payable: 8,600
- Cash: 54,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education