A company has bonds outstanding with a face value of $100,000.The unamortized premium on these bonds is $2,700.If the company retired these bonds at a call price of 99,the journal entry to record this retirement includes a debit to:
A)Bonds Payable for $100,000,a debit to Premium on Bonds Payable for $2,700,a credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $3,700.
B)Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,700,a credit to Cash for $99,000,and a credit to Premium on Bonds Payable for $2,700.
C)Bonds Payable for $100,000,credit to Cash for $99,000,and a credit to Gain on Bond Retirement for $1,000.
D)Bonds Payable for $100,000,a debit to Loss on Bond Retirement for $1,673,and a credit to Cash for $101,673.

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The carrying value of the bonds is $102,700 (or the face amount of $100,000 plus the unamortized premium of $2,700).The journal entry to record this retirement includes a debit to Bonds Payable for $100,000 (the face value),a debit to Premium on Bonds Payable for $2,700 (the unamortized premium),a credit to Cash for $99,000 (the face value of $100,000 × call price of 0.99),and a credit to Gain on Bond Retirement for $3,700 (or the carrying value of $102,700 − the cash paid of $99,000).

A Company Has Bonds Outstanding with a Face Value of $100,000.The