AccountingTyrell Company issued callable bonds with a par value of $24,000. The calloption requires Tyrell to pay a call premium of $500 plus par (or a total of$24,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the calloption. The call option is exercised after the semiannual interest is paid the daybefore on June 30. Record the entry to retire the bonds under each separatesituation.1. The bonds have a carrying value of $19,500.2. The bonds have a carrying value of $25,000.View transaction listJournal entry worksheet12>Record the retirement of the bonds assuming the bonds have a carrying valueof $19,500.Note: Enter debits before credits.DateGeneral JournalDebitCreditJuly 01Record entryClear entryView general journalView transaction listJournal entry worksheet1>Record the retirement of the bonds assuming the bonds have a carrying valueof $25,000.Note: Enter debits before credits.DateGeneral JournalDebitCreditJuly 01Record entryClear entryView general journal

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: Tyrell Company issued callable bonds…

Tyrell Company issued callable bonds with a par valu option requires Tyrell to pay a call premium of $50O $24.500) to bondholders to retire the bonds. On July

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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Please fill pictures out: Tyrell Company Issued callable bonds with a par value of $16,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $16,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option Is exerased after the semannual interest Is paid the day before on June 30. Record the entry to retire the bonds under each separate situation 1. The bonds have a carrying value of $13,500. 2 The bonds have a carrying value of $17,000.
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