NYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $47 million, but the market value of the bonds is $45 million. The entry to record the retirement will include: Select one: a. A credit of $4 million to Gain on Bond Retirement. b. A debit of $4 million to Loss on Bond Retirement. c. No gain or loss on retirement d. A debit of $2 million to Loss on Bond Retirement e. A credit of $2 million to Gain on Bond Retirement.

NYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $47 million, but the market value of the bonds is $45 million. The entry to record the retirement will include: Select one: a. A credit of $4 million to Gain on Bond Retirement. b. A debit of $4 million to Loss on Bond Retirement. c. No gain or loss on retirement d. A debit of $2 million to Loss on Bond Retirement e. A credit of $2 million to Gain on Bond Retirement.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
The Titan retires a $24.7 million bond issue when the carrying value of the bonds is $21.9 million, but the market value of the bonds is $28.1 million. The entry to record the retirement will include: Multiple Choice A credit of $6.2 million to a gain account. No gain or loss on retirement. A credit to cash for $21.9 million. A debit of $6.2 million to a loss account.
NYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $43 million, but the market value of the bonds is $46 million. The entry to record the retirement will include: Select one: a. A debit of $3 million to Loss on Bond Retirement. b. A credit of $1 million to Gain on Bond Retirement. c. A debit of $1 million to Loss on Bond Retirement d. No gain or loss on retirement e. A credit of $2 million to Gain on Bond Retirement.
The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.2 million, but the market value of the bonds is $27.8 million. The entry to record the retirement will include: Multiple Choice A debit of $6.6 million to a loss account. No gain or loss on retirement. A credit of $6.6 million to a gain account. A credit to cash for $21.2 million.
The Titan retires a $25.9 million bond issue when the carrying value of the bonds is $22.6 million, but the market value of the bonds is $29.0 million. The entry to record the retirement will include: Multiple Choice A credit to cash for $22.6 million. No gain or loss on retirement. A debit of $6.4 million to a loss account. A credit of $6.4 million to a gain account.
Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the time of retiring such bonds was $78,693. Record the entry for retirement of bonds. о О Date Description Cash Bonds Payable To record the retirement of bonds before maturity) Date Bonds Payable Gain on Bonds Retirement Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Ref. Debit in S) $ Credit(in 5) 78.693 S 78,693 Ref. Debit(in 5) Credit(in 5) $ 78694 S 4,693 $ 74,000 Ref Debit(in S) Credit(in S $ 78,693 $ 78,693 Ref. Debit in 5). Credit in 5) S 74,000 $ 74,000
Pizza Pier retires its 7% bonds for $70,800 before their scheduled maturity. At the time, the bonds have a face value of $72,800 carrying value of $74,965.Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the early retirement of the bonds. Transaction General Journal Debit Credit 1
Premium Pizza retires its 5% bonds for $64,000 before their scheduled maturity. At the time, the bonds have a face amount of $61,800 and a carrying value of $66,380. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.). How do you figure out the "gain"?
Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $962750. The entry to record the redemption will include a debit of $34750 to Premium on Bonds Payable. credit of $11650 to Gain on Bond Redemption. credit of $34750 to Loss on Bond Redemption. debit of $46400 to Premium on Bonds Payable.
(23) Godwin Corporation retires its bonds at 109 on January 1, after the payment of interest. The face value of the bonds is $620,000. The carrying value of the bonds at retirement is $639,500. The entry to record the retirement will include a: A. credit of $36,300 to Gain on Retirement Bonds. B. credit of $36,300 to Loss on Retirement Bonds. C. debit of $55,800 to Premium on Bonds Payable. D. debit of $19,500 to Premium on Bonds Payable.
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
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash (a2) Discount on Bonds Payable Bonds Payable * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing 177310 Debit 489600 20400 Credit 510000