### Present Entries for Selected TransactionsThe following entries are examples of journal entries required to record specific transactions related to bonds. These entries will be entered into the accounting records as described below. Each transaction is detailed, with corresponding data provided.#### a. Issuance of Bonds**Transaction Description:** Issued $2,750,000 of 10-year, 8% bonds at 97.- **Journal Entry Fields:** - Description/Account - Debit Amount - Credit Amount1. **Account Title:** Cash **Debit Amount:** (To be calculated) **Credit Amount:** 2. **Account Title:** Discount on Bonds Payable **Debit Amount:** **Credit Amount:** 3. **Account Title:** Bonds Payable **Debit Amount:** **Credit Amount:** *Leave fields blank if no entry is required.*#### b. Amortization of Bond Discount**Transaction Description:** Amortized bond discount for a full year using the straight-line method.- **Journal Entry Fields:** - Description/Account - Debit Amount - Credit Amount1. **Account Title:** Bond Interest Expense **Debit Amount:** **Credit Amount:** 2. **Account Title:** Discount on Bonds Payable **Debit Amount:** **Credit Amount:** *Leave fields blank if no entry is required.*#### c. Calling Bonds**Transaction Description:** Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of redemption.- **Journal Entry Fields:** - Description/Account - Debit Amount - Credit Amount1. **Account Title:** Bonds Payable **Debit Amount:** **Credit Amount:** 2. **Account Title:** Loss on Bond Redemption **Debit Amount:** **Credit Amount:** 3. **Account Title:** Cash **Debit Amount:** **Credit Amount:** *Leave fields blank if no entry is required.*

Bonds are the debt instrument that is used to raise long-term debts. The bonds payable is a…

Present entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.

Present entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.

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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A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.
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