Question

Sunland Company retires its $700000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $726215. The entry to record the redemption will include a

Answer 1

Debit of $726215 to Premium on Bonds Payable

Step-by-step explanation:

Based on the information given we were told that The carrying value of the bonds at the redemption date was the amount of $726215 which therefore means that The entry to record the redemption will include a DEBIT OF $726215 TO PREMIUM ON BONDS PAYABLE.

( To record the redemption)