Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the time of retiring such bonds was $78,693.Record the entry for retirement of bonds.оОDateDescriptionCashBonds PayableTo record the retirement of bonds before maturity)DateBonds PayableGain on Bonds RetirementCashDescriptionTo record the retirement of bonds before maturity)DateBonds PayableCashDescriptionTo record the retirement of bonds before maturity)DateBonds PayableCashDescriptionTo record the retirement of bonds before maturity)Ref. Debit in S)$Credit(in 5)78.693S78,693Ref. Debit(in 5)Credit(in 5)$78694S 4,693$ 74,000Ref Debit(in S) Credit(in S$ 78,693$ 78,693Ref. Debit in 5).Credit in 5)S74,000$ 74,000

b. Bonds Payable $78,693 Gain on Bonds Retirement 4,693 Cash 74,000To record the retirement…

Answered: Health First Ltd. retires its 8% bonds…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
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
Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is issuance amounts to $ 6,000 $ 194,000. The discount on the bonds at The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July…
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
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.
Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual interest. The face value of the bonds is $720000. The carrying value of the bonds at the redemption date is $745200. The entry to record the redemption will include a credit of $10800 to Gain on Bond Redemption. Odebit of $25200 to Premium on Bonds Payable. debit of $36000 to Premium on Bonds Payable. credit of $25200 to Loss on Bond Redemption.
Oriole Company retires its $540000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $519750. The entry to record the redemption will include a the debit of $31050 to Gain on Bond Redemption. the debit of $10800 to Premium on Bonds Payable. the credit of $20250 to Loss on Bond Redemption. the credit of $20250 to Discount on Bonds Payable.
Sheridan Corporation retires its $540000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $560223. The entry to record the redemption will include a O debit of $1377 to Loss on Bond Redemption. O credit of $21627 to Premium on Bonds Payable. O debit of $21600 to Premium on Bonds Payable. O credit of $1377 to Loss on Bond Redemption.
Seaview Magazine issued $660,000 of 15-year, 6% callable bonds payable on July 31, 2024, at 99. On July 31, 2027, Seaview called the bonds at 103. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2027. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2027. No explanation is required. ..... Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2027. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentence below. The carrying amount of the bonds payable at issuance (July 31, 2024) is The on the bonds at issuance amounts to
Jen Corporation retires its P 500,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is P 518,725. The entry to record the redemption will include a a. credit of P 18,725 to Loss on Bond Redemptionb. debit of P 18,725 to Premium on Bonds Payablec. credit of P 6,725 to Gain on Bond Redemptiond. debit of P 25,000 to Premium on Bonds Payable
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Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Retiring bonds payable before maturity On January 1, 2018, Powell Company issued $350,000 of 10%, five-year bonds payable at 102. Powell Company has extra cash and wishes to retire the bonds payable on January 1, 2019, immediately after making the second semiannual interest payment. To retire the bonds, Powell Company pays the market price of 98. Requirements What is Powell Company’s carrying amount of the bonds payable on the retirement date? How much cash must Powell Company pay to retire the bonds payable? Compute Powell Company’s gain or loss on the retirement of the bonds payable.

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