Question: On September 10 2012 Mooney Plastic Products issued bonds with

On September 10, 2012, Mooney Plastic Products issued bonds with a face value of $500,000 for a price of 96. During 2015, Mooney exercised a call provision and redeemed the bonds for 101. At the time of the redemption, the bonds had a balance sheet value of $490,000.
a. Prepare the journal entry to record the redemption.
b. Assume that the bonds were issued in 2012 for 102, and at the time of redemption they had a balance sheet value of $507,000. Prepare the journal entry to record the bond redemption.


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  • CreatedAugust 19, 2014
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