Answer:
d.Credit to gain on bond retirement for $10,800
Explanation:
Based on the information given we were told that the Company retired the amount of $900,000 which includes 7% bond issue at 98 which means that If the unamortized discount is $7,200, the journal entry will include a:Credit to gain on bond retirement for $10,800 calculated as
Dr bond payable $900,000
Cr Gain on retirement $10,800
[($900,000-$882,000)-($7,200)]
Cr Discount on Bond $7,200
Cr Cash $882,000
(98%*9/$900,000)
The company retirement refers to the phase of the firm when the firm permanently chooses to leave the operation and functioning of the market.
The correct answer is d. Credit to gain on bond retirement for $10,800
The Company retired the amount of $900,000 which includes a 7% bond issue at 98 which means that If the unamortized discount is $7,200, the journal entry will be:
bond payable $900,000 (Dr)
Gain on retirement $10,800 (Cr)
Discount on Bond $7,200 (Cr)
Cash $882,000 (Cr)
(Being entry of retirement of the bonds of the company)
Gain on retirement= ($900,000-$882,000)-($7,200)
Cash= [tex]\begin{aligned}(98\%\times\frac{9}{900000})\end{aligned}[/tex]
To know more about the entries and the calculation of the retirement, refer to the link below:
https://brainly.com/question/18764698
