The Velvet Corporation has outstanding $400,000 of 8 percent bonds callable at 104. On December 1, immediately after the payment of the semiannual interest and the amortization of the bond discount were recorded, the unamortized bond discount equaled $10,500. On that date, $240,000 of the bonds were called and retired. Prepare the journal entry to record the retirement of the bonds on December 1.
Answer to relevant QuestionsSchiff Stores has outstanding $100,000 of 7 percent bonds callable at 103. On July 1, immediately after recording the payment of the semiannual interest and the amortization of the premium, the unamortized bond premium ...Prepare the entry to record income taxes on December 31, 2011, assuming that Jason Corporation’s income tax expense is $120,000 and that it owes $80,000 in income taxes to the government. Prepare the journal entry to ...The Maruska Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and the amortization of the discount, the unamortized ...Abellan Corporation has $4,000,000 of 9.5 percent, 25-year, $1,000 bonds dated May 1, 2011, with interest payable on April 30 and October 31. The company’s fiscal year ends on December 31, and it uses the straight-line ...At the beginning of 2011, Domino Company incurred the following start-up and organization costs: (1) Attorneys’ fees with a market value of $40,000, paid with 24,000 shares of $1 par value common stock, (2) Incorporation ...
Post your question