What is the journal entry to retire bonds at maturity?

What is the journal entry to retire bonds at maturity?

Expert Solution

Step 1: Definition of bond

A bond is a type of long-term liability in which the company issues a bond to fulfill a large number of money needs.

Step 2: Journal entry

The journal entry on the retirement of the bonds is passed by debiting the bonds payable account and crediting the cash account.

Date	Particulars	Debit	Credit
	Bonds Payable
	Cash
	(Entry to record the payment of bonds)

The bonds are retired when the maturity period of the bonds is completed

Sahil Dangi answered 2 years ago

prepare the journal entry to record payment of the note at maturity

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