College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 22, Problem 6SEB
REDEMPTION OF BONDS ISSUED AT A DISCOUNT Medina Optical Supply sold bonds at a discount for $420,000 (discount of $20,000) eight years ago.
(a) The corporation redeems $25,000 of this issue at 94. The unamortized discount is $250.
(b) The corporation redeems $30,000 of this issue at 101. The unamortized discount is $300.
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Redemption of Bonds Payable
An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.
Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
2. On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received
proceeds of $404,000. Interest is payable each June 30 and December 31. The company uses the
straight-line method to amortize the discount. The journal entry to record the first interest
payment is:
A. Debit Bond Interest Expense $12,270; credit Cash $12,270
B. Debit Bond Interest Expense $24,540; credit Cash $24,540
C. Debit Bond Interest Expense $12,020; debit Discount on Bonds Payable $250; credit Cash
$12,270
D. Debit Bond Interest Expense $12,270; debit Discount on Bonds Payable $250; credit Cash
$12,520
E. Debit Bond Interest Expense $12,520; credit Cash $12,270; credit Discount on Bonds Payable
$250
Wildhorse Corporation issued $300,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was
$283,500, the company redeemed the bonds at 96.
Prepare the entry to record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not
indent manually.)
Account Titles and Explanation
Cash
Discount on Bonds Payable
Bonds Payable
Debit
Credit
Chapter 22 Solutions
College Accounting, Chapters 1-27
Ch. 22 - A secured bond is one that is backed by specific...Ch. 22 - Prob. 2TFCh. 22 - When bonds are issued at face value, the debit to...Ch. 22 - Prob. 4TFCh. 22 - Prob. 5TFCh. 22 - Bonds that give the holder the option of...Ch. 22 - Prob. 2MCCh. 22 - Prob. 3MCCh. 22 - Prob. 4MCCh. 22 - Bond sinking fund earnings are (a) subtracted from...
Ch. 22 - Prob. 1CECh. 22 - Prob. 2CECh. 22 - Prob. 3CECh. 22 - Prob. 4CECh. 22 - Prob. 5CECh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - What accounts are affected when bonds are issued...Ch. 22 - Prob. 6RQCh. 22 - Prob. 7RQCh. 22 - Prob. 8RQCh. 22 - Prob. 9RQCh. 22 - When bonds are redeemed before maturity, how is...Ch. 22 - Prob. 11RQCh. 22 - How should sinking fund earnings be reported on...Ch. 22 - Prob. 13RQCh. 22 - Prob. 1SEACh. 22 - Prob. 2SEACh. 22 - Prob. 3SEACh. 22 - REDEMPTION OF BONDS ISSUED AT FACE VALUE Levesque...Ch. 22 - REDEMPTION OF BONDS ISSUED AT A PREMIUM Brighton...Ch. 22 - REDEMPTION OF BONDS ISSUED AT A DISCOUNT...Ch. 22 - BOND SINKING FUNDS M. J. Adams Corporation pays...Ch. 22 - BONDS ISSUED AT FACE VALUE Ito Co. issued the...Ch. 22 - Prob. 9SPACh. 22 - Prob. 10SPACh. 22 - Prob. 11SPACh. 22 - Prob. 12SPACh. 22 - Prob. 13SPACh. 22 - Prob. 1SEBCh. 22 - Prob. 2SEBCh. 22 - Prob. 3SEBCh. 22 - Prob. 4SEBCh. 22 - Prob. 5SEBCh. 22 - REDEMPTION OF BONDS ISSUED AT A DISCOUNT Medina...Ch. 22 - Prob. 7SEBCh. 22 - BONDS ISSUED AT FACE VALUE Ramona Arroyo Co....Ch. 22 - Prob. 9SPBCh. 22 - Prob. 10SPBCh. 22 - Prob. 11SPBCh. 22 - BONDS ISSUED AT A DISCOUNT, REDEEMED AT A GAIN...Ch. 22 - Prob. 13SPBCh. 22 - MANAGING YOUR WRITING The business where you work...Ch. 22 - Prob. 1ECCh. 22 - MASTERY PROBLEM Jackson, Inc.s fiscal year ends...Ch. 22 - CHALLENGE PROBLEM This problem challenges you to...
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