The December 31, 2021 balance sheet of Blossom Co. included the following items: 7.5% bonds payable...

 

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The December 31, 2021 balance sheet of Blossom Co. included the following items: 7.5% bonds payable due December 31, 2029 $3,660,000 Unamortized discount on bonds payable 146,400 The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2020, Wolfe retired $732,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1 Interest Expense Cash Discount on Bonds Payable (To record interest and discount on bonds) Apr. 1 Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash (To record entry for retirement of bonds) The December 31, 2021 balance sheet of Blossom Co. included the following items: 7.5% bonds payable due December 31, 2029 $3,660,000 Unamortized discount on bonds payable 146,400 The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2020, Wolfe retired $732,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 1 Interest Expense Cash Discount on Bonds Payable (To record interest and discount on bonds) Apr. 1 Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash (To record entry for retirement of bonds)

Answer rating: 100% (QA)

Working note 732000366000020 or 15 Time periodDec 2021Dec 2029 8 yearsfor one yearit will be ... View the full answer