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 6SEA

REDEMPTION OF BONDS ISSUED AT A DISCOUNT Mutschelknaus Manufacturing sold bonds at a discount for $290,000 (discount of $10,000) seven years ago.

(a) The corporation redeems $25,000 of this issue at 97. The unamortized discount is $350.

(b) The corporation redeems $30,000 of this issue at 99. The unamortized discount is $450.

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

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College accounting, chapters 1-9

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