The balance sheet for Miley Consulting reports the following information on July 1, 2017. Non-current liabilities Bonds

Question:

The balance sheet for Miley Consulting reports the following information on July 1, 2017.

Non-current liabilities

Bonds payable, 4%, due 2020...............................$940,000

The face value of these bonds is $1,000,000. Miley decides to redeem these bonds at 101 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2017.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...