SeaviewSeaview

Magazine issued

$ 360 comma 000$360,000

of 15-year,

7 %7%

callable bonds payable on July 31,

20182018,

at

9393.

On July 31,

20212021,

SeaviewSeaview

called the bonds at

103103.

Assume annual interest payments.

Requirements

1.	Without making journal entries, compute the carrying amount of the bonds payable at July 31, 20212021.
2.	Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 20212021. No explanation is required.

Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31,

20212021.

(Assume bonds payable are amortized using the straight-line amortization method.)

First, complete the sentence below.

The carrying amount of the bonds payable at issuance (July 31, 2018) is $			334,800	. The	discount	on the bonds at
issuance amounts to $	25,200	.

The carrying amount of the bonds payable at July 31, 2021 is $

339,840

.

Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31,

20212021.

No explanation is required. (Record debits first, then credits. Exclude explanations from any journal entries.)

Date			Accounts	Debit	Credit
2021
Jul. 31			Bonds Payable	360,000
			Loss on Retirement of Bonds Payable
			Cash
			Discount on Bonds Payable		5040

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