For situation (D) and stuation (0), prepare the entry to redeem the bonds a) VCa, redeemed $140,000 face value, 9 bonds on April 30, 2022, at 101 The carrying value of the bends at the redemption date was $126,500 The bonds pay annual isterest, and the Interest payment due on Apsil 30, 2022, has been made and recorded FY bonds parely sell at Tace valuo beciuse the intereit nee printod on the bond (5 woeks ago7) may be figher or lower than the mavet mite of irterest on doy you isstie the bond It invertor buys your $1,000 bond at 1027 you get $1,020 in aath for the bond 72 premien If investor buys at 96 you will get 5960 for your 51,000 bond If discount (FY) when you redeem the bond yoe will pay out face value of 51 000 regardless of a separate acet from BONOS PAYABIE Face (1ssieng (selingl bonds at a promium mesns you got more cash so your actual cost (Interesti is less that whyt is prited on bond certing af a divcount means you means it costs you more linterest thar the printed band mate Note that your annual bond interest paymont is unalhectid by the anount the investor face volue IFh In 2019 the U S govt pald iNTEREST EXFENSE of 574 bullilen for one yearl When govt incrnases the deficit it moans choosing to attyy in debt and pay interest exp 7) Remedy reduce expenditures or nilse taves Fy Carying value of bonds is a calaulaton of fie bond taoe katwe plita premiums (or minur discountil If ind bates a trier cost for the tond Compaing the tace vatue of a bond to ta' cacry value detemities whether vou have a oin or ibte when you redeem the bonds To crecele the joumaterity paid out (e cent of 57,020 ) that todal 5 or w tota' 5CR Situation (a) journal entry upesd the How To in the areen araw ahovel) b) OCore reseemed siteroos face value, 12 55 tonds on hine 30,2022 , at 9 a, been mase and recorded 1structions or situation (a) and situation (b), prepare the entry to redeem the bonds a) MCo, redeemed $140,000 face value, 9 bonds on April 30, 2022, at 101 The carrying value of the bonds at the redemption date was $126,500 The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded FY bands rardy soll at 7ace value because the interest rate printed on the band ( 5 weeks ago ) may be higher or lower than the markot rate of interest an day you issue the bond If investor buys your $1,000 bond at 102 you get $1,020 in cash for the bond a (FYl when you redeem the bond you will pay out face value of $1,000 regardless of a premium or discount ) Premium on Bonds Publ' or Discount on Bonds exbl are in a separate acct from BONDS PAYABLE acct (issuing (solling) bonds at a premlum means you get more cash so your actual cost (interest) is less that what is printed on bond Solling at a discount means you means it costs you more (interest) than the printed bond rate) Note that your annual bond interest payment is unaffected by the amount the investor paid for your bond If your bond pays 6w interest, your annual iNT EXP is 65 of bond face value (FYI in 2019 the U S govt paid INTEREST EXPENSE of 574 billion for one yeart When govt increases the deficit it means choosing to stay in debt and pay Interest exp7 Romedy reduce expenditures or ralse taxes FF Carrying value of bonds is a calculation of the bond face value plus premiums for minus discounts), It indicotes a truer cost for the bond Comparing the face value of a bond to its' carry value dotermines whether you have a gah or loss when you redeom the bonds To creote the foumal entry (1) Bonds are tedeemed at face vatuo (DR Bonds EADD (2) calculite CASH pald out to modeem bonds (a 51 000 bend redeemed at 102 means cash pad out (a CR) of $1,020) (3) calculate premium or ditoount on bonds payabio by (tace value carrying value) If GREATER THAN foce vatuo a Promium' (DR premium on 7 (4) Calculose gain or loss on redempton by plupping in DR $ (lose 7 or CR $ (gain 7 so that total $ OR fotal $CR Situstion (a) joumal entry (Read the How To in the areen ama ahnowel) b) OCorp redeemed $170,000 face value, 12 5 bonds on June 30,2022 , at 98 The carrying value of the bonds at the redemption date was $184,000 The bonds pay annual interest, and the interest payment due on June 30,2022 , has been made and recorded Situation (b) journal entry, (Read the How To in the green area abovel)

Question

For situation (D) and stuation (0), prepare the entry to  redeem  the bonds  a) VCa, redeemed $140,000 face value, 9  bonds on April 30, 2022, at 101  The carrying value of the bends at the redemption date was $126,500  The bonds pay annual isterest, and the Interest payment due on Apsil 30, 2022, has been made and recorded  FY  bonds parely sell at Tace valuo  beciuse the intereit nee printod on the bond (5 woeks ago7) may be figher or lower than the  mavet mite  of irterest on doy you isstie the bond  It invertor buys your $1,000 bond  at 1027 you get $1,020 in aath for the bond 72 premien  If investor buys  at 96  you will get 5960 for your 51,000 bond     If discount   (FY)  when you redeem the bond yoe will pay out face value of 51 000 regardless of a separate acet from BONOS PAYABIE Face  (1ssieng (selingl bonds at a  promium  mesns you got more cash so your actual cost (Interesti is less that whyt is prited on bond certing af a divcount means you means it costs you more linterest thar the printed band mate  Note that your annual bond interest paymont is unalhectid by the anount the investor face volue  IFh  In 2019 the U S  govt pald iNTEREST EXFENSE of 574 bullilen for one yearl When govt  incrnases the deficit  it moans  choosing to attyy in debt and pay  interest exp 7)  Remedy   reduce expenditures or nilse taves  Fy   Carying value  of bonds is a calaulaton of fie bond taoe katwe plita premiums (or minur discountil  If ind bates a trier cost for the tond Compaing the tace vatue of a bond to ta' cacry value detemities whether vou have a oin or ibte when you redeem the bonds  To crecele the joumaterity paid out (e cent of 57,020 ) that todal 5 or w tota' 5CR  Situation (a) journal entry upesd the  How To  in the areen araw ahovel) b) OCore reseemed siteroos face value, 12 55 tonds on hine 30,2022 , at 9 a, been mase and recorded  1structions or situation (a) and situation (b), prepare the entry to  redeem  the bonds  a) MCo, redeemed $140,000 face value, 9   bonds on April 30, 2022, at 101  The carrying value of the bonds at the redemption date was $126,500  The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded  FY  bands rardy soll at 7ace value  because the interest rate printed on the band ( 5 weeks ago ) may be higher or lower than the  markot rate  of interest an day you issue the bond  If investor buys your $1,000 bond  at 102   you get $1,020 in cash for the bond      a (FYl  when you redeem the bond you will pay out face value of $1,000 regardless of a  premium or discount )   Premium on Bonds Publ' or  Discount on Bonds exbl  are in a separate acct from BONDS PAYABLE acct  (issuing (solling) bonds at a  premlum  means you get more cash so your actual cost (interest) is less that what is printed on bond  Solling at a discount means you means it costs you more (interest) than the printed bond rate)  Note that your annual bond interest payment is unaffected by the amount the investor paid for your bond  If your bond pays  6w  interest, your annual iNT EXP is 65 of bond face value  (FYI  in 2019 the U S  govt paid INTEREST EXPENSE of 574 billion for one yeart When govt  increases the deficit  it means  choosing to stay in debt and pay Interest exp7  Romedy   reduce expenditures or ralse taxes  FF   Carrying value  of bonds is a calculation of the bond face value plus premiums for minus discounts), It indicotes a truer cost for the bond  Comparing the face value of a bond to its' carry value dotermines whether you have a gah or loss when you redeom the bonds  To creote the foumal entry  (1) Bonds are tedeemed  at face vatuo (DR  Bonds EADD  (2) calculite CASH pald out to modeem bonds (a 51 000 bend redeemed at 102 means cash pad out (a CR) of $1,020)  (3) calculate  premium  or  ditoount on bonds payabio by (tace value   carrying value)  If GREATER THAN foce vatuo   a  Promium' (DR  premium on  7  (4) Calculose gain or loss on redempton by plupping in DR $ (lose  7 or CR $ (gain  7 so that total  $ OR   fotal $CR  Situstion (a) joumal entry (Read the  How To  in the areen ama ahnowel) b) OCorp redeemed $170,000 face value, 12 5  bonds on June 30,2022 , at 98   The carrying value of the bonds at the redemption date was $184,000  The bonds pay annual interest, and the interest payment due on June 30,2022 , has been made and recorded  Situation (b) journal entry, (Read the  How To  in the green area abovel)

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For situation (D) and stuation (0), prepare the entry to redeem the bonds. a) VCa, redeemed $140,000 face value, 9% bonds on April 30, 2022,

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