Several years ago. Cyclop Company issued bonds with a face value of $1,000,000 for $1,115,000. As a result of declining interest rates, Assessment Tool iFrame ecided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,028,000. 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 General Journal Debit Credit 1 Bonds payable Bond premium Loss on bond call Cash
Several years ago. Cyclop Company issued bonds with a face value of $1,000,000 for $1,115,000. As a result of declining interest rates, Assessment Tool iFrame ecided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,028,000. 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 General Journal Debit Credit 1 Bonds payable Bond premium Loss on bond call Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
Transcribed Image Text:Several years ago. Cyclop Company issued bonds with a face value of $1,000,000 for $1,115,000. As a result of declining interest rates,
Assessment Tool iFrame ecided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of
$1,028,000.
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
General Journal
Debit
Credit
1
Bonds payable
Bond premium
Loss on bond call
Cash
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