Redemption of Bonds Payable A $960,000 bond issue on which there is an unamortized premium of $60,000 is redeemed for $779,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable 960,000 Premium on Bonds Payable 60,000 X Gain on Redemption of Bonds 121,000 X Cash 779,000

Redemption of Bonds Payable A $960,000 bond issue on which there is an unamortized premium of $60,000 is redeemed for $779,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable 960,000 Premium on Bonds Payable 60,000 X Gain on Redemption of Bonds 121,000 X Cash 779,000

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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Question

I have managed to find bonds payable and cash but I'm not sure how to find preimium on bonds payable and gain on redemption on bonds payable.

Redemption of Bonds Payable
A $960,000 bond issue on which there is an unamortized premium of $60,000 is redeemed for $779,000.
Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Bonds Payable
960,000
Premium on Bonds Payable
60,000 X
Gain on Redemption of Bonds
121,000 X
Cash
779,000

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