Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date June 30, 2023 Account Titles and Explanation June 30, 2023 (To record redemption of bonds payable) (To record issuance of new bonds) Debit Credit On June 30, 2016, Martinez Limited issued 13.75% bonds with a par value of $806, 000 due in 20 years. They were issued at 96 and were callable at 102 at any date after June 30, 2023. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2023, and to issue new bonds. New 896 bonds were sold in the amount of $1 million at 104; they mature in 20 years. The compan follows ASPE and uses straight-line amortization. The interest payment dates are December 31 and June 30 of each year. (a) Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit June 30, 2023 Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Credit June Debit (To record redemption of bonds payable) June 30, 2023 (To record issuance of new bonds)

Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date June 30, 2023 Account Titles and Explanation June 30, 2023 (To record redemption of bonds payable) (To record issuance of new bonds) Debit Credit On June 30, 2016, Martinez Limited issued 13.75% bonds with a par value of $806, 000 due in 20 years. They were issued at 96 and were callable at 102 at any date after June 30, 2023. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2023, and to issue new bonds. New 896 bonds were sold in the amount of $1 million at 104; they mature in 20 years. The compan follows ASPE and uses straight-line amortization. The interest payment dates are December 31 and June 30 of each year. (a) Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit June 30, 2023 Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Credit June Debit (To record redemption of bonds payable) June 30, 2023 (To record issuance of new 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

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 10RE: Use the information in RE3-6, (a) assuming Ringo Company makes reversing entries, prepare the...

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