Asked Dec 19, 2019

A $1,200,000 bond issue on which there is an unamortized premium of $63,956 is redeemed for $1,250,000. Journalize the redemption of the bonds.


Expert Answer

Step 1

Journalize the redemption of the bonds.

Step 2

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Working notes: Determine the gain or loss on the redemption of the bonds payable. Step 1: Calculate carrying amount of bonds payable on the redemption. (Face value Carrying amount of bonds payable = + Unamortized premium = $1, 200, 000 + $63, 956 = $1, 263, 956


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