Bonds Payable has a balance of $892,000, and Premium on Bonds Payable has a balance of $9,812. If the issuing company redeems the bonds at 102, what is the amount of g loss on redemption? Oa. $8,028 loss Ob. $9,812 loss Oc. $9,812 gain Od. 58,028 gain

Bonds Payable has a balance of $892,000, and Premium on Bonds Payable has a balance of $9,812. If the issuing company redeems the bonds at 102, what is the amount of g loss on redemption? Oa. $8,028 loss Ob. $9,812 loss Oc. $9,812 gain Od. 58,028 gain

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds...

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Question

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Bonds Payable has a balance of $892,000, and Premium on Bonds Payable has a balance of $9,812. If the issuing company redeems the bonds at 102, what is the amount of gain or
loss on redemption?
Oa. $8,028 loss
Ob. $9,812 loss
Oc. $9,812 gain
Od. $8,028 gain

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