Sheridan, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,860,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $242,400) at 104 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date July 1 August 1 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash Debit COOOOO Credit 000000
Sheridan, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,860,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $242,400) at 104 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date July 1 August 1 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash Debit COOOOO Credit 000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Haresh
Transcribed Image Text:Sheridan, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued
$9,860,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11%
bonds (with unamortized discount of $242,400) at 104 on August 1.
Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Record entries in the order
displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account
titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
Date
July 1
August 1
Cash
Discount on Bonds Payable
Bonds Payable
Bonds Payable
Loss on Redemption of Bonds
Discount on Bonds Payable
Cash
Debit
LOOOOO
Credit
0000000
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