The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included...

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The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 14% bonds having a face amount of $40 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 16% Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 101 ($40.4 million) before their scheduled maturity. Required: 1. & 2, Prepare the necessary journal entries by Twin Digital on July 1, 2021, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 14% bonds having a face amount of $40 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 16% Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 101 ($40.4 million) before their scheduled maturity. Required: 1. & 2, Prepare the necessary journal entries by Twin Digital on July 1, 2021, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Answer rating: 100% (QA)

Journal entry Date account and explanation Debit Cred... View the full answer