On 28 February 20X8, 20% of the bond was retired for $1,232,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $450, representing amortization on the retired debt only. Required: Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) O Answer is not complete. No Transaction General Journal Debit Credit 1 Interest expense 12,617 a. Premium on bonds payable 450 Cash 13,067 O 2 b. Bonds payable 1,120,000 O Premium on bonds payable 8,958 Cash 1,128,958 X

On 28 February 20X8, 20% of the bond was retired for $1,232,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $450, representing amortization on the retired debt only. Required: Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) O Answer is not complete. No Transaction General Journal Debit Credit 1 Interest expense 12,617 a. Premium on bonds payable 450 Cash 13,067 O 2 b. Bonds payable 1,120,000 O Premium on bonds payable 8,958 Cash 1,128,958 X

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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