On December 31, a $1,800,000 bond issue on which there is an unamortized discount of $67,700 is redeemed for $1,759,200.

Required:

Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 

Transcribed Image Text:

DESCRIPTION Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Cash JOURNAL POST. REF. DEBIT 1,800,000.00 67,700.00 Score: 29/49 CREDIT 26,900.00 1,840,800.00 ACCOUNTING EQUATION ASSETS ↓ V LIABILITIES ↓ ↓ EQUITY ↑ DESCRIPTION Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Cash JOURNAL POST. REF. DEBIT 1,800,000.00 67,700.00 Score: 29/49 CREDIT 26,900.00 1,840,800.00 ACCOUNTING EQUATION ASSETS ↓ V LIABILITIES ↓ ↓ EQUITY ↑

Answer rating: 100% (QA)

Date Dec31 Bonds payable Description Los... View the full answer