On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $315,000 for its outstanding bonds that have a carrying value of $319,000 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following? O Debit to Bonds Payable $315,000. O Debit to Premium on Bonds Payable $9,000. O Credit to Gain on Retirement of Bonds of $4,000. O Credit to Cash of $315,000. O Debit to Bonds Payable $310,000.

On January 1, MJKB Incorporated exercises a call option that requires MJKB to pay $315,000 for its outstanding bonds that have a carrying value of $319,000 and a par value of $310,000. The company exercises the call option after the semiannual interest payment was made the day before (December 31). The entry to retire the bonds does not include which of the following? O Debit to Bonds Payable $315,000. O Debit to Premium on Bonds Payable $9,000. O Credit to Gain on Retirement of Bonds of $4,000. O Credit to Cash of $315,000. O Debit to Bonds Payable $310,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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