Tyrell Company issued callable bonds with a par value of $10,000. The call option requires Tyrell...
Tyrell Company issued callable bonds with a par value of $10,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $10,500) 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. 1. The bonds have a carrying value of $9,000. 2. The bonds have a carrying value of $11,000.
Homework Answers
Answer:
| Date | Accounts title | Debit($) | Credit($) |
| Jul-01 | Bonds Payable | $10000 | |
| Loss on redemption | $1,500 | ||
| Discount on Bonds Payable [10000 - 9000] | $1,000 | ||
| Cash [10000 + 500] | $10,500 | ||
| Date | Accounts title | Debit | Credit |
| Jul-01 | Bonds Payable | $10,000 | |
| Premium on Bonds Payable [11000 - 10000] | $1,000 | ||
| Gain on redemption of bonds | $500 | ||
| Cash [10000 + 500] | $10,500 |
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I need help with the whole question. I need explanation and solution Please and Thank you....
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solution Please and Thank you.
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I need help with the whole question. I need explanation and
solution Please and Thank you.
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