Nair Company issued a $7 million bond at a discount five years ago. The current carrying amount of the bond is $6.25 million. The company now has excess cash and decides to retire the bond. The bond is callable at 120 percent of its face value. Required: Prepare the journal entry to record the retirement of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) Answer is not complete. No 1 Transaction (a) Bond payable General Journal Debit Credit 7,000,000 × Discount on bonds payable 750,000 x Cash 6,250,000

Nair Company issued a $7 million bond at a discount five years ago. The current carrying amount of the bond is $6.25 million. The company now has excess cash and decides to retire the bond. The bond is callable at 120 percent of its face value. Required: Prepare the journal entry to record the retirement of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) Answer is not complete. No 1 Transaction (a) Bond payable General Journal Debit Credit 7,000,000 × Discount on bonds payable 750,000 x Cash 6,250,000

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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