A company retired $82 million of its 8% bonds at 108 ($86.1 million) before their scheduled maturity.

Fantastic news! We've Found the answer you've been seeking!

Question:

A company retired $82 million of its 8% bonds at 108 ($86.1 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $3 million. Prepare the journal entry to record the redemption of the bonds

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Posted Date: May 02, 2024 04:16 AM

See More Questions

Vacation Homes manufactures prefabricated chalets in Utah. The com- pany uses a job order costing system in which each chalet is a job. The following events occurred during May. a. Purchased...
Clinical psychology and forensic psychology have distinct similarities yet very unique differences regarding their roles and responsibilities to the field of criminal justice. Compare and contrast...
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these...
You are the central banker for a country that is considering the adoption of a new nominal anchor. When you take the position as chairperson, the inflation rate is 4% and your position as the central...
Represent each of these graphs with an adjacency matrix. a) K4 b) K1,4 c) K2,3 d) C4 e) W4 f) Q3
Assume an auditor sets acceptable risks of incorrect rejection and incorrect acceptance at .10 and .05, respectively, applies ratio estimation, and obtains the following results: estimated population...
For each of the following situations, identify the correct factor to use from Tables 1 or 2 in the appendix on present value tables. Also, compute the appropriate present value. 1. Annual net cash...
A digital system is modelled by the RTL code in Listing Q1. Assume that a, b and c are external inputs, and the registers are positive-edge triggered. By using the ALU with the functions given in...
Prepare a Statement of Financial Position and Statement of Comprehensive Income as of 31st December 2020, for the Avengers Lookalike Bhd. from the following list of information: Item RM 15,800...
1. What is diet as tolerated? Indications? Examples 2. You are taking care of a patient who has been ordered to undergo a surgery requiring general anesthesia. Clear liquid diet was ordered. What is...
How does lean production impact the overall employee morale and job satisfaction within an organization?
How does lean production enable organizations to better respond to disruptions and changes in the marketplace?
How is innovation strategy in the context of services different from innovation strategy in the context of goods?
Martinez Company's ending inventory includes the following items. Cost per Market per Product Units Unit Unit Helmets 24 $ 52 $ 56 Bats 17 80 74 Shoes 38 42 97 93 38 38 Uniforms Compute the lower of...
Read an article, 5 for 5: McDonald's, order kiosks, mobile power and health care and make a summary of this article
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
The internal energy of an ideal gas depends on (a) Temperature, specific heat and volume (b) Temperature and specific heat (c) Temperature, specific heat and pressure (d) Pressure, volume and...
In the ammonia synthesis reaction $\mathrm{N}_{2}+3 \mathrm{H}_{2}=2 \mathrm{NH}_{3}+22.4 \mathrm{kcal}$, the formation of $\mathrm{NH}_{3}$ will be favoured by (a) High temperature (b) Low...
At constant temperature, the volume of a given mass of a gas is inversely proportional to the pressure. This is known as (a) Avogadro's law (b) Charles' law (c) Boyle's law (d) none of these.

A company retired $82 million of its 8% bonds at 108 ($86.1 million) before their scheduled maturity.

Question:

Expert Answer:

To record the redemption of the bonds we need to make two journal entries The first entry will elimi... View the full answer

Intermediate Accounting

Students also viewed these finance questions