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 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
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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 3e
June; maturity date, 30 June 20X11
Premium on bonds payable
$5,600,000
47,040
$5,647,040
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa34e851f-4612-4e29-acb1-b1c1a5e68e4c%2F307b0024-b659-43bd-8a23-2f34c6a2542d%2F0u4iok_processed.jpeg&w=3840&q=75)
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 3e
June; maturity date, 30 June 20X11
Premium on bonds payable
$5,600,000
47,040
$5,647,040
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.)
![View transaction list
1 Record the entry to update interest expense and
amortization.
2 Record the entry to retire bonds.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
III
......](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa34e851f-4612-4e29-acb1-b1c1a5e68e4c%2F307b0024-b659-43bd-8a23-2f34c6a2542d%2Fwdzj6la_processed.jpeg&w=3840&q=75)
Transcribed Image Text:View transaction list
1 Record the entry to update interest expense and
amortization.
2 Record the entry to retire bonds.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
III
......
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