The situations presented here are independent of each other. Instructions For each situation, prepare the appropriate journal
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Instructions
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
(a) Martha Corporation retired $140,000 face value, 9% bonds on April 30, 2012, at 101.
The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2012, has been made and recorded.
(b) Williams, Inc., retired $170,000 face value, 12.5% bonds on June 30, 2012, at 98. The carrying value of the bonds at the redemption date was $184,000. The bonds pay annual interest, and the interest payment due on June 30, 2012, has been made and recorded.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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