### Tyrell Company Callable Bonds and Retirement Entries**Overview:**Tyrell Company issued callable bonds with a par value of $36,000. The call option requires a payment of $500 as a call premium plus the par value ($36,500 total) for bond retirement. On July 1, Tyrell exercises the call option. The call occurs after semiannual interest is paid on June 30. Below are the journal entries to retire the bonds under different carrying values.**Scenarios:**1. **Bond Carrying Value: $28,500**2. **Bond Carrying Value: $37,000****Instructions:**Record the bond retirement using the journal entry worksheet based on each carrying value situation.#### Journal Entry Worksheet (for $28,500 carrying value)- **Date:** July 01- **Instructions:** Enter debits before credits.- **Table Format:** - Columns: Date, General Journal, Debit, Credit - Rows: Input fields for relevant accounts and amounts**Buttons:**- **Record entry**: Save the journal entry.- **Clear entry**: Remove all inputted data.- **View general journal**: Access the complete collection of journal entries.This worksheet is intended to assist in accurately recording financial transactions related to bond retirement, ensuring compliance with proper accounting practices.

Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Answered: 1. The bonds have a carrying value of…

Business

Accounting

1. The bonds have a carrying value of $28,500. 2. The bonds have a carrying value of $37,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Tyrell Company Callable Bonds and Retirement Entries

**Overview:**
Tyrell Company issued callable bonds with a par value of $36,000. The call option requires a payment of $500 as a call premium plus the par value ($36,500 total) for bond retirement. On July 1, Tyrell exercises the call option. The call occurs after semiannual interest is paid on June 30. Below are the journal entries to retire the bonds under different carrying values.

**Scenarios:**

1. **Bond Carrying Value: $28,500**
2. **Bond Carrying Value: $37,000**

**Instructions:**
Record the bond retirement using the journal entry worksheet based on each carrying value situation.

#### Journal Entry Worksheet (for $28,500 carrying value)

- **Date:** July 01
- **Instructions:** Enter debits before credits.
- **Table Format:**
- Columns: Date, General Journal, Debit, Credit
- Rows: Input fields for relevant accounts and amounts

**Buttons:**
- **Record entry**: Save the journal entry.
- **Clear entry**: Remove all inputted data.
- **View general journal**: Access the complete collection of journal entries.

This worksheet is intended to assist in accurately recording financial transactions related to bond retirement, ensuring compliance with proper accounting practices.

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