Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2024, at 103. The bonds' carrying amount at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2024, at 99. The bonds' carrying amount at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles 1. Bonds Payable 2. Loss on Bond Redemption Cash Bonds Payable Gain on Bond Redemption Cash Debit Credit

Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2024, at 103. The bonds' carrying amount at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2024, at 99. The bonds' carrying amount at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2024, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles 1. Bonds Payable 2. Loss on Bond Redemption Cash Bonds Payable Gain on Bond Redemption Cash Debit Credit

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 13M

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Similar questions

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
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