Required information

O$.$ January $1$ Providence, Incorporated, issues $$1,000,000$ of $10$ percent, $5-$year bonds at par value.

Complete the necessary journal entry by selecting the account names from the drop$-$down menus and entering the dollar amounts in the debit or credit columns.

Tyrell Company issued callable bonds with a par value of $$42,000.$ The call option requires Tyrell to pay a call premium of $$500$ plus par $($or a total of $$42,500)$ to bondholders to retire the bonds. On July $1,$ Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June $30.$ Record the entry to retire the bonds under each separate situation.

The bonds have a carrying value of $$33,000.$

The bonds have a carrying value of $$43,000.$

Journal entry worksheet

$1$

$2$

Record the retirement of the bonds assuming the bonds have a carrying value of $$33,000.$

Prev

$1$ of $11$