Question

Required information The following information applies to the questions displayed below.) On January 1, 2021, White Water Issues $470,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $504,962. 2. If the market interest rate increases to 8% on December 31, 2023, it will cost $445,177 to retire the bonds. Record the retirement of the bonds on December 31, 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) No Debit Credit 470,000 Date General Journal December 31, 202 Bonds Payable Premium on Bonds Payable Loss Cash 24,992 X 49,815 X 445,177

Answer 1

31 Dec 2012      Bonds Payable                                             4,70,000

                           Premium on Bonds Payable                              63,229

                                             Gain                                                                                       88,052

                                             Cash                                                                                      4,45,177