Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of

Question:

Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a:

(a) credit of $3,745 to Loss on Bond Redemption.

(b) debit of $3,745 to Premium on Bonds Payable.

(c) credit of $1,255 to Gain on Bond Redemption.

(d) debit of $5,000 to Premium on Bonds Payable.AppendixLO2

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Tools For Business Decision Making

ISBN: 9781118771112

5th Edition

Authors: Kimmel, Wetlands, Kieso

See More Books

Question Posted: Sep 19, 2024 04:01 AM

See More Questions

A quality of information demonstrated when different independent observers could reach the same general conclusions that the information represents what it purports to represent is: O a...
What is RAID storage technology?
A piece of property is purchased for $10,000 and yields a $1000 yearly net profit. The property is sold after 5 years. What is its minimum price to breakeven with interest at 1O%?
Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to...
Mullins Distribution markets CDs of numerous performing artists. At the beginning of March, Mullins had in beginning inventory 2,500 CDs with a unit cost of $7. During March, Mullins made the...
Windsor Inc, sells $2500 of merchandise on account to C1 Company with credit terms of 2/13,n/30. If C1 Company remits a check taking advantage of the discount offered, what is the amount of C1...
Prescher Corporation issued bonds that pay interest every July 1 and January 1. The entry to accrue bond interest at December 31 includes a: (a) debit to Interest Payable. (b) credit to Cash. (c)...
In a recent year, Derek Corporation had net income of $150,000, interest expense of $30,000, and income tax expense of $20,000. What was Derek Corporations times interest earned for the year? (a)...
5. Match each of the following terms with its defi nition: 1. Zygote a. Smallest unit through which 2. Gene genetic information is passed 3. Chromosome b. Fertilized egg c. Rod-shaped structure...
2.1.35 A 1m x 1m square board is sup- ported by two strings AE and BF. The ten- sion in the string BF is 20 N. Express this tension as a vector. y E 2 m 2.5 m F 1 1 m A B plate 1 m 2 m D C x...
On January 15, 2014, Mary Barra became the chief executive officer (CEO) of General Motors, the first female CEO of a major global automaker. She is also a member of the GM board of directors....
Emily needs your help with building a display for cakes. She wants to include a small roof over the display to provide some shade and protection from the elements. She is trying out different...
An IT director reviews a cyber security audit and learns that an old accounting server is significantly out of compliance. Rather than attempting repairs, the director concludes that decommissioning...
The purpose of one-way ANOVA is to compare multiple means from the variations of the mean. The null hypothesis is Ho = 2 = = k and alternate is HA i Hj. We have the sample data in the table: Y1 Y2...
One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different proprietorships: Determine the missing amounts, identifying them...
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
The adjusted trial balance of Davisen Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2010: Sales $900,000; Freight-out $12,000; Sales Returns and Allowances...
Presented below is information for Yates Co. for the month of January 2010. Cost of goods sold ........$212,000 Freight-out ............ 7,000 Insurance expense ......... 12,000 Salary expense...
Presented below is information for Yates Co. for the month of January 2010. Cost of goods sold ........$212,000 Freight-out ............ 7,000 Insurance expense ......... 12,000 Salary expense...

Goethe Corporation redeems its $100,000 face value bonds at 105 on January 1, following the payment of

Question:

Step by Step Answer:

Accounting Tools For Business Decision Making

Students also viewed these Business questions