Presented below and on page 527 are three independent situations. 1. Longbine Corporation redeemed $130,000 face value,

Question:

Presented below and on page 527 are three independent situations.
1. Longbine redeemed $130,000 12% bonds on June 30, 2015, at 102. The carrying value of the bonds at the redemption date was $117,500. The bonds pay semiannual interest, and the interest payment due on June 30, 2015, has been made and recorded.
2. Tastove Inc. redeemed $150,000 12.5% bonds on June 30, 2015, at 98. The carrying value of the bonds at the redemption date was $151,000. The bonds pay semiannual interest, and the interest payment due on June 30, 2015, has been made and recorded.
3. Precision Company has $80,000, 8%, 12-year convertible bonds outstanding. These bonds were sold at and pay semiannual interest on June 30 and December 31 of each year. The bonds are convertible into 30 shares of Precision $5 for each $1,000 worth of bonds. On December 31, 2015, after the bond interest has been paid, $20,000 bonds were converted. The market price of Precision was $44 per share on December 31, 2015.

Instructions
For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds.

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Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Par Value
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