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III. Presented below are two independent situations: (a) Howell Corporation purchased $700,000 of its bonds on June 30, 2017, at 102 and immediately retired them.
III. Presented below are two independent situations: (a) Howell Corporation purchased $700,000 of its bonds on June 30, 2017, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $679,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. (b) Justice, Inc. purchased $400,000 of its bonds at 97 on June 30, 2017, and immediately retired them. The carrying value of the bonds on the retirement date was $393,000. The bonds pay annual interest and the interest payment due on June 30, 2017, has been made and recorded. Instructions ( @8 x 2.16) For each of the independent situations, prepare the journal entry to record the retirement of the bonds. (a)
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