Question
A company has a $150,000 par value bond with an unamortized premium of $5,000. (a) What is the carrying value of the bond? (b) What
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A company has a $150,000 par value bond with an unamortized premium of $5,000.
(a) What is the carrying value of the bond?
(b) What would the entry be to record the retirement of this bond by purchasing the bond on the open market at 98.5?
| Date | Account Titles | Debit | Credit |
(c) Instead of (b), what if we converted the bond to shares of common stock? Prepare the journal entry to record this transaction.
| Date | Account Titles | Debit | Credit |
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
