Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $962750. The entry to record the redemption will include a debit of $34750 to Premium on Bonds Payable. credit of $11650 to Gain on Bond Redemption. credit of $34750 to Loss on Bond Redemption. debit of $46400 to Premium on Bonds Payable.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $962750. The entry to record the redemption will include a

debit of $34750 to Premium on Bonds Payable.
credit of $11650 to Gain on Bond Redemption.
credit of $34750 to Loss on Bond Redemption.
debit of $46400 to Premium on Bonds Payable.
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