Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the time of retiring such bonds was $78,693.Record the entry for retirement of bonds.оОDateDescriptionCashBonds PayableTo record the retirement of bonds before maturity)DateBonds PayableGain on Bonds RetirementCashDescriptionTo record the retirement of bonds before maturity)DateBonds PayableCashDescriptionTo record the retirement of bonds before maturity)DateBonds PayableCashDescriptionTo record the retirement of bonds before maturity)Ref. Debit in S)$Credit(in 5)78.693S78,693Ref. Debit(in 5)Credit(in 5)$78694S 4,693$ 74,000Ref Debit(in S) Credit(in S$ 78,693$ 78,693Ref. Debit in 5).Credit in 5)S74,000$ 74,000

b. Bonds Payable $78,693 Gain on Bonds Retirement 4,693 Cash 74,000To record the retirement…

Answered: Health First Ltd. retires its 8% bonds…

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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Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Credit
Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is issuance amounts to $ 6,000 $ 194,000. The discount on the bonds at The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July…
On July 1, 2018, Miniature Company has bonds with balances as shown below. Bonds Payable 65,000 Discount Payable on Bonds 3,250 If the company retires the bonds for $66,150, what will be gain or loss on the retirement?
Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?
What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…
Sheridan Corporation retires its $540000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $560223. The entry to record the redemption will include a O debit of $1377 to Loss on Bond Redemption. O credit of $21627 to Premium on Bonds Payable. O debit of $21600 to Premium on Bonds Payable. O credit of $1377 to Loss on Bond Redemption.
On January 1, 2021, the company issued $1,800,000, 6% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 9%. The accountant did NOT record the issuance of these bonds. Interest is paid annually and the accountant did NOT record the interest payment transaction. The effective interest method is used to amortize any premium or discount. NOTE – round calculations to nearest dollar. In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 2” to make any calculations, including an amortization schedule, to support journal entries.
H1.
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iRequirements 1. Journalize Andersen Brothers's transactions related to the bonds for 2018. 2. Journalize the entry required on the Thomson bonds maturity date. (Assume the last interest payment has already been recorded.) Print Done
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