Below are three independent situations. 1. Wakarusa Corporation retired $126,000 par value, 14% bonds on June 30, 2012, in 104. The book value of the bonds at redemption date was $122,220. The bonds pay semi-annual interest and the interest payment due June 30, 2012 has been made and recorded. 2. Pin Oak Inc. retired $142,100 par value, 12.5% bonds on June 30, 2012 at 96. The book value of the bonds at redemption date was $144,300. The bonds pay semi-annual interest and the interest payment due June 30, 2012 has been made and recorded. 3. Mishawaka Company has $75,200, 9%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay interest semiannually on June 30 and December 31 of each year. The notes are convertible into 30 shares of Mishawaka common stock with a par value of $10 per $1,000 in notes. On December 31, 2012, after paying the interest on the bonds, $42,000 par value bonds were converted. The market value of Mishawaka's common shares was $48 per share on December 31, 2012. 

For each stand-alone situation above,

prepare the appropriate journal entry for the redemption or conversion of the notes.

Answer rating: 100% (QA)

Journal entry for the retirement of bonds by Wakarusa Corporation Debi... View the full answer