Question

On January 1, 2020, Shamrock Incorporated redeemed bonds prior to their maturity date of January 1, 2021. The face value of the bonds was $400,000, and the redemption was performed at 99. As at the redemption date, the unamortized premium was $9,790. Prepare the corporation’s journal entry to record the redemption of the bonds

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

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Answer 1

Journal Entry Particulars Bonds Payable To Cash To Unamortized premium (Being bond redemed at discount) Debit($) Credit($) Calculation 400000 396000 (4000*99) 4000 5790 (9790-4000) Unamortized premium To Profit $ Loss A/C (Being balance unamortized premium written off) 5790