An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Journal Entry PracticeThis exercise focuses on recording the redemption of bonds on December 31. Students are instructed to refer to the Chart of Accounts for the precise wording of account titles.**Journal Table Structure:**1. **Date**: Column for the transaction date.2. **Description**: Space to describe the transaction details.3. **Post. Ref.**: Reference column for posting numbers.4. **Debit**: Column to record debits.5. **Credit**: Column to record credits.**Accounting Equation Section:**- **Assets**: Section for adjusting asset accounts.- **Liabilities**: Section for modifying liability accounts.- **Equity**: Section focused on changes in equity accounts.This setup assists learners in accurately documenting financial transactions and understanding their impact on financial statements.

Given: Bond payable $800,000; Unamortized premium $57,000; and proceeds from redemption of bond is…

An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.

An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.

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

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An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.

Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.

Journal Entry Practice

This exercise focuses on recording the redemption of bonds on December 31. Students are instructed to refer to the Chart of Accounts for the precise wording of account titles.

**Journal Table Structure:**

1. **Date**: Column for the transaction date.
2. **Description**: Space to describe the transaction details.
3. **Post. Ref.**: Reference column for posting numbers.
4. **Debit**: Column to record debits.
5. **Credit**: Column to record credits.

**Accounting Equation Section:**

- **Assets**: Section for adjusting asset accounts.
- **Liabilities**: Section for modifying liability accounts.
- **Equity**: Section focused on changes in equity accounts.

This setup assists learners in accurately documenting financial transactions and understanding their impact on financial statements.

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