The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $41.6 million and a remaining premium of $6.4 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Required: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 104 (104% of face amount). Eastern Post repurchased $10.4 million of the bonds on the open market at their market price of $10.9 million.

The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $41.6 million and a remaining premium of $6.4 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Required: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 104 (104% of face amount). Eastern Post repurchased $10.4 million of the bonds on the open market at their market price of $10.9 million.

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
Volunteer 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 annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
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Novak Corp. redeemed $148,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $134,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.
The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2023, included 12% bonds having a face amount of $48.0 million and a remaining premium of $8.0 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Questions: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 103 (103% of face amount). Eastern Post repurchased $12.0 million of the bonds on the open market at their market price of $12.5 million.
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Crane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value of the bonds at the redemption date was $190,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.
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