Question
In: Accounting
On 31 December 20X7, a company has the following bond on the statement of financial position:...
On 31 December 20X7, a company has the following bond on the
statement of financial position:
|
Bond payable, 7%, interest due semi-annually on 31
Dec. |
$ | 8,200,000 |
| Premium on bonds payable | 68,880 | |
| $ | 8,268,880 | |
On 28 February 20X8, 20% of the bond was retired for $1,804,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $660, representing amortization on the retired debt only.
Required:
Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
- Record the entry to update interest expense and amortization.
- Record the entry to retire bonds.
Solutions
ekkarill92 answered 4 months agoRelated Solutions
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