Acme Manufacturing retired an issue of bonds before they matured. The bonds had been issued at their face value of $500,000, and the cash paid for the retirement amounted to $503,250. What journal entry was made to record the bond retirement?
A. Debit Bonds Payable for $503,250, credit Gain on Bond Retirement for $3,250, and credit Cash for $500,000
B. Debit Bonds Payable for $500,000, debit Loss on Bond Retirement for $3,250, and credit Cash for $503,250
C. Debit Bonds Payable and credit Cash for $503,250
D. Debit Bonds Payable for $500,000, debit Gain on Bond Retirement for $3,250, and credit Cash for $503,250
Answer: B
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