The following are two independent situations. 1. Sandhill Corporation redeemed $130,500 face value, 10% bonds on June 30, 2020, at 105. The carrying value of the bonds at the redemption date was $117,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. 2. Tastove Inc. redeemed $161,000 face value, 18.00% bonds on June 30, 2020, at 97. The carrying value of the bonds at the redemption date was $164,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The following are two independent situations. 1. Sandhill Corporation redeemed $130,500 face value, 10% bonds on June 30, 2020, at 105. The carrying value of the bonds at the redemption date was $117,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. 2. Tastove Inc. redeemed $161,000 face value, 18.00% bonds on June 30, 2020, at 97. The carrying value of the bonds at the redemption date was $164,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 5E
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Question
The following are two independent situations.
1. | Sandhill Corporation redeemed $130,500 face |
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2. | Tastove Inc. redeemed $161,000 face value, 18.00% bonds on June 30, 2020, at 97. The carrying value of the bonds at the redemption date was $164,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. |
For each independent situation above, prepare the appropriate
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