The following are two independent situations.. Blossom Corporation redeemed $120,000 face value, 10% bonds on June 30, 2020, at 101. The carrying value of the bonds at the redemption date was $107,500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.2. Tastove Inc. redeemed $140,000 face value, 10.00% bonds on June 30, 2020, at 95. The carrying value of the bonds at the redemption date was $141,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The following are two independent situations.1.2.1.Blossom Corporation redeemed $120,000 face value, 10% bonds on June 30, 2022, at 101. The carrying value of the bonds atthe redemption date was $107,500. The bonds pay annual interest, and the interest payment due on June 30, 2022, has beenmade and recorded.For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)No. Account Titles and Explanation2.Tastove Inc. redeemed $140.000 face value, 10.00% bonds on June 30, 2022, at 95. The carrying value of the bonds at theredemption date was $141,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has beenmade and recorded.Bonds PayableLoss on Bond RedemptionDiscount on Bonds PayableCashBonds PayablePremium on Bonds PayableGain on Bond RedemptionCashDebit120000140000Credit12500133000

Redemption is described as the repayment of any security issued or debt issued or any bonds issued…

Answered: The following are two independent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are two independent situations.

.		Blossom Corporation redeemed $120,000 face value, 10% bonds on June 30, 2020, at 101. The carrying value of the bonds at the redemption date was $107,500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.
2.		Tastove Inc. redeemed $140,000 face value, 10.00% bonds on June 30, 2020, at 95. The carrying value of the bonds at the redemption date was $141,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.

For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

The following are two independent situations.
1.
2.
1.
Blossom Corporation redeemed $120,000 face value, 10% bonds on June 30, 2022, at 101. The carrying value of the bonds at
the redemption date was $107,500. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been
made and recorded.
For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
2.
Tastove Inc. redeemed $140.000 face value, 10.00% bonds on June 30, 2022, at 95. The carrying value of the bonds at the
redemption date was $141,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been
made and recorded.
Bonds Payable
Loss on Bond Redemption
Discount on Bonds Payable
Cash
Bonds Payable
Premium on Bonds Payable
Gain on Bond Redemption
Cash
Debit
120000
140000
Credit
12500
133000

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