Redemption of Bonds Payable A $940,000 bond issue on which there is an unamortized premium of $75,000 is redeemed for $795,000. ournalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable Gain on Redemption of Bonds x 940,000 70,000 x Premium on Bonds Payable x 75,000 X Cash 795,000 Feedback Check My Work The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price. A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds
Redemption of Bonds Payable A $940,000 bond issue on which there is an unamortized premium of $75,000 is redeemed for $795,000. ournalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable Gain on Redemption of Bonds x 940,000 70,000 x Premium on Bonds Payable x 75,000 X Cash 795,000 Feedback Check My Work The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price. A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Redemption of Bonds Payable
A $940,000 bond issue on which there is an unamortized premium of $75,000 is redeemed for $795,000.
ournalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Bonds Payable
Gain on Redemption of Bonds x
940,000
70,000 x
Premium on Bonds Payable x
75,000 X
Cash
795,000
Feedback
Check My Work
The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price.
A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds
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