On January 1, Year 1 Barry Inc. issued $100,000, 5-year bonds at 4% with annual interest payments. The market rate of interest at the time was also 4%. On January 1, Year 3, after the payment of the annual interest for Year 2, Barry redeemed the bonds at 103. The journal entry to record the redemption would include a:
a) Debit to Loss on Redemption for $3,000.
b) Credit to Cash for $100,000.
c) Credit to Loss on Redemption for $3,000.
d) Debit to Bonds Payable for $103,000.