Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is $ 194,000. The discount on the bonds at issuance amounts to $ 6,000 The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Credit Jul. 31, 2028 Bonds Payable Loss on Retirement of Bonds Payable Discount on Bonds Payable Cash Debit 200,000 6,800 4,800 202,000
Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is $ 194,000. The discount on the bonds at issuance amounts to $ 6,000 The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Credit Jul. 31, 2028 Bonds Payable Loss on Retirement of Bonds Payable Discount on Bonds Payable Cash Debit 200,000 6,800 4,800 202,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments.
Requirements
1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028.
2.
Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required.
Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.)
First, complete the sentences below.
The carrying amount of the bonds payable at issuance (July 31, 2025) is
issuance amounts to $ 6,000
$ 194,000. The discount on the bonds at
The carrying amount of the bonds payable at July 31, 2028 is $ 195,200
Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. (Record debits first, then credits. Exclude explanations from any journal entries.)
Date
Accounts
Credit
Jul. 31, 2028
Bonds Payable
Loss on Retirement of Bonds Payable
Discount on Bonds Payable
Cash
Debit
200,000
6,800
4,800
202,000
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