13. ) Concord Company had bonds outstanding with a face value of $400,000. On April 30, 2017, when these bonds had an unamortized discount of $35,000, they were called in at 102. To pay for these bonds, Concord had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 100 (face value $400,000). Ignoring interest, record the journal entries for the redemption of the old bonds and the issuance of the new bonds. Redemption of Old Bonds Date Accounts DR CR 4-30-17 Issuance of New Bonds Date Accounts DR CR 3-30-17

13. ) Concord Company had bonds outstanding with a face value of $400,000. On April 30, 2017, when these bonds had an unamortized discount of $35,000, they were called in at 102. To pay for these bonds, Concord had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 100 (face value $400,000). Ignoring interest, record the journal entries for the redemption of the old bonds and the issuance of the new bonds. Redemption of Old Bonds Date Accounts DR CR 4-30-17 Issuance of New Bonds Date Accounts DR CR 3-30-17

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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On June 30, 2016, Flint Limited issued 13.75% bonds with a par value of $802,000 due in 20 years. They were issued at 99 and were callable at 102 at any date after June 30, 2023. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2023, and to issue new bonds. New 10% bonds were sold in the amount of $1 million at 104; they mature in 20 years. The company follows ASPE and uses straight-line amortization. The interest payment dates are December 31 and June 30 of each year. Prepare the entry required on December 31, 2023, to record the payment of the first six months of interest and the amortization of the bond premium. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Dec.…