Question
Blossom Company redeemed $146,000 face value, 14% bonds on April 30, 2022, at 103. The carrying value of the bonds at the redemption date was
Blossom Company redeemed $146,000 face value, 14% bonds on April 30, 2022, at 103. The carrying value of the bonds at the redemption date was $133,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. | ||
b. | Wildhorse Co. redeemed $176,000 face value, 18.5% bonds on June 30, 2022, at 96. The carrying value of the bonds at the redemption date was $187,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. |
For each situation, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit | |
---|---|---|---|---|
a. | April 30 | enter an account title for the journal entry on April 30 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on April 30 | enter a debit amount | enter a credit amount | ||
enter an account title for the journal entry on April 30 | enter a debit amount | enter a credit amount | ||
enter an account title for the journal entry on April 30 | enter a debit amount | enter a credit amount | ||
b. | June 30 | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | ||
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | ||
enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount |
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