Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,039,000. Required: Record the retirement of the bonds, using a premium account. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the retirement of the bonds, using a premium account. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry
Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,039,000. Required: Record the retirement of the bonds, using a premium account. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the retirement of the bonds, using a premium account. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates,
the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of
$1,039,000.
Required:
Record the retirement of the bonds, using a premium account.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
Record the retirement of the bonds, using a premium account.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
View general journal
Record entry
Clear entry
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education