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Recording the Refunding of Long - Term Debt On January 1 of Year 1 , Rocket Corporation issued $ 2 5 0 , 0 0
Recording the Refunding of LongTerm Debt
On January of Year Rocket Corporation issued $ of year bonds at The interest is payable each December Rocket uses straightline amortization. The companys accounting period ends December On January of Year Rocket issued $year bonds at par; it then immediately purchased all of the bonds. On this date, the bonds could be purchased in the open market at
a Provide the entry for issuance of the bonds on January of Year
b Provide the entry for issuance of the bonds on January of Year
c Provide the entry to record the extinguishment of the bonds on January of Year
Date Account Name Dr Cr
a Jan. Year
Cash
Answer
Discount on Bonds Payable
Answer
Bonds Payable
Answer
To record the issuance of bonds.
b Jan. Year
Cash
Answer
Bonds Payable
Answer
To record the issuance of bonds.
c Jan. Year
Bonds Payable
Answer
Loss on Redemption of Bonds
Answer
Answer
Answer
To record the extinguishment of bonds.
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