The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included...

Transcribed Image Text:

The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $20 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ($20.4 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $20 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. Interest was accrued and expensed on December 31, 2023. On July 1, 2024, Twin Digital retired the bonds at 102 ($20.4 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.

Answer rating: 100% (QA)

Twin Digital Corporation Journal Entries July 1 2024 Transaction Retirement of 12 Bonds at 102 1 Bon... View the full answer