The balance sheet of River Electronics Corporation as of December 31, 2023, included 13.25% bonds having a face amount of $90.4 million. The bonds had been issued in 2016 and had a remaining discount of $3.4 million at December 31, 2023. On January 1, 2024, River Electronics called the bonds before their scheduled maturity at the call price of 104.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The balance sheet of River Electronics Corporation as of December 31, 2023, included 13.25% bonds having a face amount of $90.4 million. The bonds had been issued in 2016 and had a remaining discount of $3.4 million at December 31, 2023. On January 1, 2024, River Electronics called the bonds before their scheduled maturity at the call price of 104.

No
1
Date
January 01, 2024 Bonds payable
General Journal
Loss on early extinguishment
Discount on bonds payable
Cash
Debit
90,400,000
Credit
3,400,000
Transcribed Image Text:No 1 Date January 01, 2024 Bonds payable General Journal Loss on early extinguishment Discount on bonds payable Cash Debit 90,400,000 Credit 3,400,000
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