Question

-- M ounting Principles, 13e Practice Assignment Gradebook BTA 111/112 (001) ORION Downloadable Textbook ignment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Question 14 Sergel Company issued $400,000 of bonds on January 1, 2020, Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Prepare the journal entry to record the redemption of the bonds before maturity at 97. Assume the balance in Premium on Bonds Payable is $4,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and explanation Debit Credit

Answer 1

Retirement of Bonds at maturity 400000 Bonds payable Cash 400,000 b) Retirement of Bords before maturity @ 97 Bonds payable 400000 premium on Bonds payable. 4,000 cash 388000 Grain on Bond Redemption 16,000 c) conversion of bonds into common stock Bonds payable 400,000 common stock 150,000 paid-in-capital in Excess of par 250,000

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