The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $41.6 million and a remaining premium of $6.4 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Required: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 104 (104% of face amount). Eastern Post repurchased $10.4 million of the bonds on the open market at their market price of $10.9 million.

The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $41.6 million and a remaining premium of $6.4 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Required: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 104 (104% of face amount). Eastern Post repurchased $10.4 million of the bonds on the open market at their market price of $10.9 million.

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 long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2023, included 12% bonds having a face amount of $48.0 million and a remaining premium of $8.0 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Questions: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 103 (103% of face amount). Eastern Post repurchased $12.0 million of the bonds on the open market at their market price of $12.5 million.
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