What is the journal entry for the redemption of the bond?A Loss on bond redemption $4KB Gain on bond redemption $4KC Loss on Bond Redemption $2K A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The journal entry for the redemption would include a

Discount on Bonds Payable = Face value of bonds - Carrying value of bonds = $300,000 - $292,000 =…

Answered: A $300,000 bond was redeemed at 98 when…

A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The journal entry for the redemption would include a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What is the journal entry for the redemption of the bond?

A Loss on bond redemption $4K

B Gain on bond redemption $4K

C Loss on Bond Redemption $2K

A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The journal entry for the redemption would include a

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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