FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Tyrell Company Issued callable bonds with a par value of $16,000. The call option requires Tyrell to pay a call premium of $500 plus
par (or a total of $16,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option Is exerased
after the semannual interest Is paid the day before on June 30. Record the entry to retire the bonds under each separate situation
1. The bonds have a carrying value of $13,500.
2 The bonds have a carrying value of $17,000.
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