A company issues $50,000 of 9%, 10-year bonds dated January 1, 2009, that mature on December 31, 2018, and pay interest semiannually for $2,250. On December 31, 2013, when the bond premium is $2,500, the bonds are called for $54,000. The journal entry to record this transaction would record a (Gain/Loss) on Bond Retirement in the amount of .

Dr Bonds payable            $50,000

Dr Bonds premium           $2,500

Dr Loss bond retirement  $1,500

Cr Cash                                        $54,000

Explanation:

The amount  of the gain or loss on retirement on the bond can be determined by posting the cash proceeds,the bonds payable as well as the balance of premium on the retirement day,in other words,the gain or loss on bond is a balancing figure.

The cash proceeds would be credited to cash at $54,000,while the bonds payable account and bond premium are debited with $50,000 and $2,500 respectively,the result with a debit  balancing figure of $1,500 which is the loss on bond retirement

answer; i believe both technician (a) and (b) are correct; /// good luck

answer; blank(1); /rises; blank(2); //increases;