The following situations are independent of each other. a. b. Monty Corp. redeemed $135,000face value, 10% bonds on April 30, 2022, at106. The carrying value of the bonds at the redemption date was $120,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Wildhorse Co. redeemed $165,000face value, 16% bonds on June 30, 2022, at98. The carrying value of the bonds at the redemption date was $178,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. For each situation, 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
The following situations are independent of each other. a. b. Monty Corp. redeemed $135,000face value, 10% bonds on April 30, 2022, at106. The carrying value of the bonds at the redemption date was $120,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Wildhorse Co. redeemed $165,000face value, 16% bonds on June 30, 2022, at98. The carrying value of the bonds at the redemption date was $178,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. For each situation, 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject :- Accountion
Transcribed Image Text:The following situations are independent of each other.
a.
b.
pril 30
Monty Corp. redeemed $135,000face value, 10% bonds on April 30, 2022, at 106. The carrying value of the bonds at the
redemption date was $120,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been
made and recorded.
For each situation, 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. If no entry is required, select "No Entry" for the account titles and enter o for the
amounts.)
une 30
Wildhorse Co. redeemed $165,000face value, 16% bonds on June 30, 2022, at98. The carrying value of the bonds at the
redemption date was $178,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been
made and recorded.
Account Titles and Explanation
Bonds Payable
Premium on Bonds Payable
Cash
Bonds Payable
Loss on Bond Redemption
Cash
Debit
135000
0
10000
165000
Credit
DFODAUT
143100
13000
161700
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