Homework Help is Here – Start Your Trial Now!
Business
Accounting
Bsued at par and have a face value of $12,000,000. company make to record the bond retirement? Dr. Cash 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Bonds Payable 12,240,000 O Dr. Cash 12,240,000

Bsued at par and have a face value of $12,000,000. company make to record the bond retirement? Dr. Cash 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Bonds Payable 12,240,000 O Dr. Cash 12,240,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please help me
Aerdale Company retires its bonds payable early at a price of 102. The bonds were issued at par and have a face value of $12,000,000. What journal entry will the company make to record the bond retirement? O Dr. Cash 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Bonds Payable 12,240,000 O Dr. Cash 12,240,000 Cr. Gain on Bond Retirement 240,000 Cr. Bonds Payable 12,000,000 O Dr. Bonds Payable 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Cash 12,240,000 O Dr. Bonds Payable 12,240,000 Cr. Gain on Bond Retirement 240,000 Cr. Cash 12,000,000 Andrews Inc. prepares the following eftective interest amortization table for its bonds payable. Interest Payment Cash Decrease Payment Amount Interest Expense $661,602 $666,466 $671,524 $676,785 $682,257 $687,947 $693.865 in Book Value Date Discount Discount June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $16,661,640 $16,788,106 $16,919,630 %$17,056,415 $17,198,672 $17,346,619 $17,500,484 $540,000 $540,000 S540.000 $121,602 $1,338,360 $126,466 $1,211,894 $131,524 $1,080,370 $136,785 $142,257 $147,947 $153,865 $160,019 $166,420 $173,077 $943,585 $801,328 $653,381 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025 June 30, 2026 Dec 31, 2026 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $499,516 %$4339,497 $173,077 $0 $700,019 $706,420 $713,077 $17,660,503 $17,826,923 $18,000,000 How much total INTEREST EXPENSE will the company report on its Income Statement for 2022? D131,524 | $136,785 $142,257 $147,947 $153,865 $160.019 $1,080,370 $943,585 $801,328 $653,381 $499,516 $339,497 $173,077 $16,919,630 $17,056,415 $17.198.672 $17,346,619 $17,500,484 $17,660,503 $17,826,923 $18,000,000 Dec 31, 2023 June 30, 2024 Dec 31, 2024 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $676,785 $682.257 $687,947 $693,865 June 30, 2025 Dec 31, 2025 June 30, 2026 $700,019 $706,420 $713,077 $166,420 Dec 31, 2026 $173,077 $0 How much total INTEREST EXPENSE will the company report on its Income Statement for 2022? O $1,328,068 O $1,080,000 O $666,466 O $661,602
Transcribed Image Text:Aerdale Company retires its bonds payable early at a price of 102. The bonds were issued at par and have a face value of $12,000,000. What journal entry will the company make to record the bond retirement? O Dr. Cash 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Bonds Payable 12,240,000 O Dr. Cash 12,240,000 Cr. Gain on Bond Retirement 240,000 Cr. Bonds Payable 12,000,000 O Dr. Bonds Payable 12,000,000 Dr. Loss on Bond Retirement 240,000 Cr. Cash 12,240,000 O Dr. Bonds Payable 12,240,000 Cr. Gain on Bond Retirement 240,000 Cr. Cash 12,000,000 Andrews Inc. prepares the following eftective interest amortization table for its bonds payable. Interest Payment Cash Decrease Payment Amount Interest Expense $661,602 $666,466 $671,524 $676,785 $682,257 $687,947 $693.865 in Book Value Date Discount Discount June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $16,661,640 $16,788,106 $16,919,630 %$17,056,415 $17,198,672 $17,346,619 $17,500,484 $540,000 $540,000 S540.000 $121,602 $1,338,360 $126,466 $1,211,894 $131,524 $1,080,370 $136,785 $142,257 $147,947 $153,865 $160,019 $166,420 $173,077 $943,585 $801,328 $653,381 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025 June 30, 2026 Dec 31, 2026 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $499,516 %$4339,497 $173,077 $0 $700,019 $706,420 $713,077 $17,660,503 $17,826,923 $18,000,000 How much total INTEREST EXPENSE will the company report on its Income Statement for 2022? D131,524 | $136,785 $142,257 $147,947 $153,865 $160.019 $1,080,370 $943,585 $801,328 $653,381 $499,516 $339,497 $173,077 $16,919,630 $17,056,415 $17.198.672 $17,346,619 $17,500,484 $17,660,503 $17,826,923 $18,000,000 Dec 31, 2023 June 30, 2024 Dec 31, 2024 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $540,000 $676,785 $682.257 $687,947 $693,865 June 30, 2025 Dec 31, 2025 June 30, 2026 $700,019 $706,420 $713,077 $166,420 Dec 31, 2026 $173,077 $0 How much total INTEREST EXPENSE will the company report on its Income Statement for 2022? O $1,328,068 O $1,080,000 O $666,466 O $661,602
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS