College accounting, chapters 1-9
College accounting, chapters 1-9
23rd Edition
ISBN: 9781337794787
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 22, Problem 5SEA

REDEMPTION OF BONDS ISSUED AT A PREMIUM Brighton Unlimited sold bonds at a premium for $630,000 (premium of $30,000) eight years ago.

(a) The corporation redeems $60,000 of this issue at 98. The unamortized premium is $600.

(b) The corporation redeems $90,000 of this issue at 102. The unamortized premium is $900.

Prepare journal entries to record the redemption in (a) and (b).

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College accounting, chapters 1-9

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