Godwin corporation retired its bonds at 105 on january 1 after the payment of interest. The face value of the bonds is 580,000. The carrying value of the bonds at retirement is 604,500. The entry ro record the retirement will include a -debit of 24,500 to premium on bonds payable -debit of 29,000 to premium on bonds payable -credit of 4500 to loss on retirements of bonds -credit of 4500 to gain on retirements of bonds

Godwin corporation retired its bonds at 105 on january 1 after the payment of interest. The face value of the bonds is 580,000. The carrying value of the bonds at retirement is 604,500. The entry ro record the retirement will include a -debit of 24,500 to premium on bonds payable -debit of 29,000 to premium on bonds payable -credit of 4500 to loss on retirements of bonds -credit of 4500 to gain on retirements of bonds

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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