Tyrell Company issued callable bonds with a par value of $36,000. The call option requires Tyrell to pay a call premium of $500 pluspar (or a total of $36,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exercisedafter the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds under each separate situation.1. The bonds have a carrying value of $28,500.2. The bonds have a carrying value of $37,000.View transaction listJournal entry worksheet12Record the retirement of the bonds assuming the bonds have a carrying valueof $28,500.Note: Enter debits before credits.DateJuly 01Record entryGeneral JournalClear entryDebitCreditView general journal

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 issued callable bonds with a par value of $36,000. The call option requires Tyrell to pay a call premium of $500 plus
par (or a total of $36,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exercised
after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds under each separate situation.
1. The bonds have a carrying value of $28,500.
2. The bonds have a carrying value of $37,000.
View transaction list
Journal entry worksheet
1
2
Record the retirement of the bonds assuming the bonds have a carrying value
of $28,500.
Note: Enter debits before credits.
Date
July 01
Record entry
General Journal
Clear entry
Debit
Credit
View general journal

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