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On January 1, 2013, On January 1, 2013, ABC Corp. issued at 95 bonds with a par value of $800,000, due in 20 years. Eight years after the issue date, ABC calls the entire issue at 101 and cancels it. At that time, the unamortized discount is $24,000. Required: Provide the journal entry to record the retirement of the bond and show your calculations for the numbers booked in your journal entry.

On January 1, 2013, On January 1, 2013, ABC Corp. issued at 95 bonds with a par value of $800,000, due in 20 years. Eight years after the issue date, ABC calls the entire issue at 101 and cancels it. At that time, the unamortized discount is $24,000. Required: Provide the journal entry to record the retirement of the bond and show your calculations for the numbers booked in your journal entry.

FINANCIAL ACCOUNTING
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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Part 3: Accounting for early retirement of bond On January 1, 2013, On January 1, 2013, ABC Corp. issued at 95 bonds with a par value of $800,000, due in 20 years. Eight years after the issue date, ABC calls the entire issue at 101 and cancels it. At that time, the unamortized discount is $24,000. Required: Provide the journal entry to record the retirement of the bond and show your calculations for the numbers booked in your journal entry.
Transcribed Image Text:Part 3: Accounting for early retirement of bond On January 1, 2013, On January 1, 2013, ABC Corp. issued at 95 bonds with a par value of $800,000, due in 20 years. Eight years after the issue date, ABC calls the entire issue at 101 and cancels it. At that time, the unamortized discount is $24,000. Required: Provide the journal entry to record the retirement of the bond and show your calculations for the numbers booked in your journal entry.
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