Chapter 12, Problem 12.26E

1.

To determine

Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.

Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various lenders known as bondholders, generally in multiples of $1,000 per bond, to raise fund for financing the operations.

Discount on bonds payable: It occurs when the bonds are issued at a low price than the face value.

To calculate: Carrying amount of bonds payable at July 31, 2021.

2.

To determine

To Journalize: The retirement of the bonds on July 31, 2021.