For each situation prepare the appropriate journal entry for the redemption of the bonds.
(a) Thunder Corporation retired $130,000 face value, 12% bonds onJune 30, 2007, at 102. The carrying value of the bonds at theredemption date was $122,500. The bonds pay annual interest, andthe interest payment due on June 30, 2007, has been made andrecorded.
(b) Lightning, Inc., retired $180,000 face value, 12.5% bonds onJune 30, 2007, at 98. The carrying value of the bon
The answer is... View the full answer
Sign up to view the full answer
Debit: Bonds payable $130,000 Debit: Loss on bonds redemption $15,100 Credit: Cash... View the full answer