On April 1, 2025, Dave's Deli issued $63,000 of its 8 percent bonds, maturing 10 years later. Interest is payable semiannually on April 1 and October 1. The issue price was 92.0. Dave's has decided to retire the bonds on August 1, 2028, three years and four months after the bonds were initially issued. The bonds were repurchased at 97. After recording the accrued interest expense payable through August 1, 2028, the balance in the Discount on Bonds Payable account is $3,360. Required: Prepare the general journal entry to record the repurchase and retirement of the bonds. View transaction list Journal entry worksheet 1 Record the entry to repurchase and retire bonds at 97. Note: Enter debits before credits. Date August 01, 2028 General Journal Debit Credit Record entry Clear entry View general journal

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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On April 1, 2025, Dave's Deli issued $63,000 of its 8 percent bonds, maturing 10 years later. Interest is payable semiannually on April 1
and October 1. The issue price was 92.0. Dave's has decided to retire the bonds on August 1, 2028, three years and four months after
the bonds were initially issued. The bonds were repurchased at 97. After recording the accrued interest expense payable through
August 1, 2028, the balance in the Discount on Bonds Payable account is $3,360.
Required:
Prepare the general journal entry to record the repurchase and retirement of the bonds.
View transaction list
Journal entry worksheet
1
Record the entry to repurchase and retire bonds at 97.
Note: Enter debits before credits.
Date
August 01, 2028
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
Transcribed Image Text:On April 1, 2025, Dave's Deli issued $63,000 of its 8 percent bonds, maturing 10 years later. Interest is payable semiannually on April 1 and October 1. The issue price was 92.0. Dave's has decided to retire the bonds on August 1, 2028, three years and four months after the bonds were initially issued. The bonds were repurchased at 97. After recording the accrued interest expense payable through August 1, 2028, the balance in the Discount on Bonds Payable account is $3,360. Required: Prepare the general journal entry to record the repurchase and retirement of the bonds. View transaction list Journal entry worksheet 1 Record the entry to repurchase and retire bonds at 97. Note: Enter debits before credits. Date August 01, 2028 General Journal Debit Credit Record entry Clear entry View general journal
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