In: Accounting
1.Two independent situations follow:
1. | Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2017, at 101. The bonds’ amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded. | |
2. | Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2017, at 96. The bonds’ amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded. |
For each situation above, prepare the appropriate journal entry for
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.)
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
1. |
June 30, 2017 |
|||
2. |
June 30, 2017 |
|||
2.
|
|
|
|
|