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Two independent situations follow: Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 1. 2. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (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 o for the amounts.) No. Date 1. 2. June 30, 2021 June 30, 2021 Account Titles and Explanation Bonds Payable Loss on Bond Redemption Cash (To record redemption of bonds.) Bonds Payable Gain on Bond Redemption Cash (To record redemption of bonds.) Debit 124800 Credit

Two independent situations follow: Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 1. 2. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (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 o for the amounts.) No. Date 1. 2. June 30, 2021 June 30, 2021 Account Titles and Explanation Bonds Payable Loss on Bond Redemption Cash (To record redemption of bonds.) Bonds Payable Gain on Bond Redemption Cash (To record redemption of bonds.) Debit 124800 Credit

FINANCIAL ACCOUNTING
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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Two independent situations follow: Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 1. 2. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (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 o for the amounts.) No. 1. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 2. Date June 30, 2021 June 30, 2021 Account Titles and Explanation Bonds Payable Loss on Bond Redemption Cash (To record redemption of bonds.) Bonds Payable Gain on Bond Redemption Cash (To record redemption of bonds.) Debit 124800 Credit III
Transcribed Image Text:Two independent situations follow: Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 1. 2. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (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 o for the amounts.) No. 1. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. 2. Date June 30, 2021 June 30, 2021 Account Titles and Explanation Bonds Payable Loss on Bond Redemption Cash (To record redemption of bonds.) Bonds Payable Gain on Bond Redemption Cash (To record redemption of bonds.) Debit 124800 Credit III
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