The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $30 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ($30.6 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list Journal entry worksheet 1 2 Record the semiannual interest. Note: Enter debits before credits Date July 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal
The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $30 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ($30.6 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list Journal entry worksheet 1 2 Record the semiannual interest. Note: Enter debits before credits Date July 01, 2024 Record entry General Journal Clear entry Debit Credit View general journal
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 12% bonds having a
face amount of $30 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%.
Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and
expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ($30.6 million) before their scheduled
maturity.
Required:
1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your
answers in whole dollars.
View transaction list
Journal entry works! et
1
2
Record the semiannual interest.
Note: Enter debits before credits
Date
July 01, 2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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