Question
Sunland Company retires its $700000 face value bonds at 103 on January 1, following the payment of interest. The carrying value of the bonds at
Sunland Company retires its $700000 face value bonds at 103 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $673750. The entry to record the redemption will include a
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| credit of $26250 to Discount on Bonds Payable. |
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| debit of $21000 to Premium on Bonds Payable. |
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| credit of $26250 to Loss on Bond Redemption. |
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| debit of $47250 to Gain on Bond Redemption. |
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R. Cornwall, David O. Vang, Jean M. Hartman
4th Edition
0765646854, 978-0765646859
