The balance sheet for Miley Consulting reports the following information on July 1, 2014. Miley decides to

Question:

The balance sheet for Miley Consulting reports the following information on July 1, 2014.

Long-term liabilities Bonds payable Less: Discount on bonds payable $1,000,000 60,000 $940,000

Miley decides to redeem these bonds at 101 after paying semiannual interest. Prepare the journal entry to record the redemption on July 1, 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...