On Jan 2 2020. A company had bonds of $4000000 and balance in the Discount account...
On Jan 2 2020. A company had bonds of $4000000 and balance in the Discount account of $250000.please record the entry if 40% of the bonds are redeemed at 108.
Homework Answers
| face value | 4000000*40%= | 1,600,000 | ||||||
| discount | 250000*40%= | 100000 | ||||||
| Journal entry | ||||||||
| Account titles & explanations | Debit | Credit | ||||||
| Bonds payable | 1,600,000 | |||||||
| loss on redemption | 228,000 | |||||||
| Discount on bonds payable | 100,000 | |||||||
| Cash | (1,600,000*108%) | 1,728,000 | ||||||
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On Jan 2 2020. A company had bonds of $4000000 and balance in
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