Eastview Magazine issued $690,000 of 15-year, 6% callable bonds payable on July 31, 2024, at 99. On July 31, 2027,Eastview called the bonds at 101. Assume annual interest payments.Requirements1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2027.2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2027. Noexplanation is required.First, complete the sentence below.The carrying amount of the bonds payable at issuance (July 31,2024) is$ 683,100. Thediscounton the bonds atIssuance amounts to $6,900The carrying amount of the bonds payable at July 31, 2027 is$ 684,480Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31,2027. No explanation is required. (Record debits first, then credits. Exclude explanations from any journal entries.)text peaceDateAccountsDebit2027Jul. 31Bonds Payable690,000Loss on Retirement of Bonds PayableCashDiscount on Bonds PayableCredit6900

References; Goldstein, M. A., Hotchkiss, E. S., & Nikolova, S. S. (2021). Dealer behavior and…

Answered: Eastview Magazine issued $690,000 of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
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