Chapter 14, Problem E14.26E

Retiring bonds payable before maturity

Learning Objective 4 2. Cash $606,000

CoastalView Magazine issued $600,000 of 15-year, 5% callable bonds payable on July 31,2018, at 94. On July 31,2021, CoastalViewcalled the bonds at 101. Assume annual interest payments.

Requirements

1 Without making journal entries, compute the carrying amount of the bonds payable at July 31,2021.
2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31,2021 No explanation is required.