Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help completing the attached work. I have completed some parts but having trouble with the remaining numbers. 1. Longbine Corporation redeemed $132,000 face value,
Need help completing the attached work. I have completed some parts but having trouble with the remaining numbers.
1. Longbine Corporation redeemed $132,000 face value, 13% bonds on June 30, 2017, at 107. The carrying value of the bonds at the redemption date was $117,500. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded. 2. Tastove Inc. redeemed $170,000 face value, 17.50% bonds on June 30, 2017, at 98. The carrying value of the bonds at the redemption date was $171,000. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded. 3. Precision Company has $87,000, 8%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 35 shares of Precision $10 par value common stock for each $1,000 worth of bonds. On December 31, 2017, after the bond interest has been paid, $22,000 face value bonds were converted. The market price of Precision common stock was $41 per share on December 31, 2017. For each independent situation above, prepare the appropriate journal entry for the redemption or conversion of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and . Explanation 1. Bonds Payable Debit Credit 132,000 Loss on Bond Re Discount on Bond 14,500 Cash 2. Bonds Payable Premium on Bond 170,000 1,000 Gain on Bond Re Cash 3. Bonds Payable Common Stock Paid-in Capital in 22,000 Account Titles and Explanation DebitStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started