Presented below are two independent situations: (a)Morten Corporation purchased $480,000 of its bonds on June 30, 2020, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $431,100. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. (b)McEvoy, Inc., purchased $330,000 of its bonds at 96 on June 30, 2020, and immediately retired them. The carrying value of the bonds on the retirement date was $321,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. Instructions For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bon
Presented below are two independent situations: (a)Morten Corporation purchased $480,000 of its bonds on June 30, 2020, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $431,100. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. (b)McEvoy, Inc., purchased $330,000 of its bonds at 96 on June 30, 2020, and immediately retired them. The carrying value of the bonds on the retirement date was $321,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. Instructions For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bon
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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Question
Presented below are two independent situations:
(a)Morten Corporation purchased $480,000 of its bonds on June 30, 2020, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $431,100. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded.
(b)McEvoy, Inc., purchased $330,000 of its bonds at 96 on June 30, 2020, and immediately retired them. The carrying value of the bonds on the retirement date was $321,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds.
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