The December 31, 2021 balance sheet of Kingbird Co. included the following items: 7.5% bonds payable due December 31, 2029   $3,540,000   Unamortized discount on bonds payable   141,600   The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2020, Wolfe retired $708,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is ente

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The December 31, 2021 balance sheet of Kingbird Co. included the following items:

7.5% bonds payable due December 31, 2029   $3,540,000  
Unamortized discount on bonds payable   141,600  


The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)

On April 1, 2020, Wolfe retired $708,000 of these bonds at 101 plus accrued interest.

Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date
Account Titles and Explanation
Debit
Credit
Apr. 1
 
 
 
 
 
 
 
       
  (To record interest and discount on bonds)    
Apr. 1
 
 
 
 
 
 
 
       
     
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