Question: The long term liability section of Eastern Post Corporation s ba

The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2010, included 10% bonds having a face amount of $40 million and a remaining premium of $6 million. On January 1, 2011, Eastern Post retired some of the bonds before their scheduled maturity.

Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below:
1. Eastern Post called half the bonds at the call price of 102 (102% of face amount).
2. Eastern Post repurchased $10 million of the bonds on the open market at their market price of $10.5 million.

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  • CreatedJuly 05, 2013
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