Question
The following are independent situations. 1. Marigold Corp. redeemed $132,000 face value, 13% bonds on June 30, 2020, at 107. The carrying value of the
The following are independent situations.
| 1. | Marigold Corp. redeemed $132,000 face value, 13% bonds on June 30, 2020, 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, 2020, has been made and recorded. | |
| 2. | Cullumber Company redeemed $170,000 face value, 18% bonds on June 30, 2020, 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, 2020, has been made and recorded. |
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. | Date | Account Titles and Explanation | Debit | Credit |
| 1. | June 30 | |||
| 2. | June 30 | |||
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
