A $485,000 bond issue on which there is an unamortized discount/premium of $32,000 is redeemed for $470,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank or enter "0". Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash 485,000 32,000 470,000
A $485,000 bond issue on which there is an unamortized discount/premium of $32,000 is redeemed for $470,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank or enter "0". Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash 485,000 32,000 470,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A $485,000 bond issue on which there is an unamortized discount/premium of $32,000 is redeemed for $470,000. Journalize the redemption of the bonds.
If an amount box does not require an entry, leave it blank or enter "0".
Bonds Payable
Loss on Redemption of Bonds
Discount on Bonds Payable
Cash
485,000
32,000
470,000
Transcribed Image Text:On the first day of the fiscal year, a company issues a $359,000, 9%, 10-year bond that pays semiannual interest of $16,155 ($359,000 x 9% x 1/2), receiving cash of
$377,000. Journalize the entry to record the first interest payment and amortization of discount/premium using the straight-line method.
If an amount box does not require an entry, leave it blank or enter "0".
Interest Expense
Premium on Bonds Payable
Cash
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Check My Work
Partially correct
8,950 X
2,205 X
16,155
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