Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2024, at 103. The bonds' carrying amount at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2024, at 99. The bonds' carrying amount at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (List all debit entries before credit entries. 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.) No. Account Titles 1. Bonds Payable 2. Loss on Bond Redemption Cash Bonds Payable Gain on Bond Redemption Cash Debit Credit
Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2024, at 103. The bonds' carrying amount at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2024, at 99. The bonds' carrying amount at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (List all debit entries before credit entries. 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.) No. Account Titles 1. Bonds Payable 2. Loss on Bond Redemption Cash Bonds Payable Gain on Bond Redemption Cash Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Two independent situations follow:
1.
2.
Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2024, at 103. The bonds' carrying amount at the
redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been
made and recorded.
Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2024, at 99. The bonds' carrying amount at the redemption
date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and
recorded.
For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (List all debit entries before credit
entries. 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.)
No. Account Titles
Debit
Credit
1.
Bonds Payable
Loss on Bond Redemption
Cash
2.
Bonds Payable
Gain on Bond Redemption
Cash
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