Question

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 13% bonds having a face amount of $92.0 million. The bonds had been issued in 2010 and had a remaining discount of $5.0 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 103. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) points View transaction list eBook Hint Journal entry worksheet Print References Record the redemption of the bonds. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018

Answer 1

Bonds payable	92,000,000
Loss on early extinguishment	7,760,000
Cash (92,000,000*103%)		94,760,000
Discount on bonds payable		5,000,000

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