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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:On 31 December 20X7, a company has the following bond on the statement of financial position:
Bond payable, 7%, interest due semi-annually on 31 Dec. and 30
June; maturity date, 30 June 20X11
Premium on bonds payable
$5,600,000
47,040
$5,647,040

Transcribed Image Text: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.)
X Answer is not complete.
No
Transaction
General Journal
Debit
Credit
1
a.
Interest expense
12,617
Premium on bonds payable
450
Cash
13,067 V
2
b.
Bonds payable
1,120,000 O
Premium on bonds payable
8,958
Cash
1,128,958 X
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