Pizza Pier retires its 7% bonds for $68,000 before their scheduled maturity. At the time, the bonds have a face value of $70,000 carrying value of $74,937. Record the early retirement of the bonds.
What will be an ideal response?
| ? | Debit | Credit |
| Bonds Payable | 70,000 | ? |
| Premium on Bonds Payable | 4,937 | ? |
| Gain | ? | 6,937 |
| Cash | ? | 68,000 |
| (Entry to record early retirement) | ? | ? |
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