A company retired $68 million of its 5% bonds at 105 ($71.4 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $1 million. Prepare the journal entry to record the redemption of the bonds.
A company retired $68 million of its 5% bonds at 105 ($71.4 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $1 million. Prepare the journal entry to record the redemption of the bonds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company retired $68 million of its 5% bonds at 105 ($71.4 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $1 million.
Prepare the
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