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The situations presented here are independent of each other.

For each situation prepare the appropriate journal entry for the redemption of the bonds. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

(a) Garland Corporation retired $146,000 face value, 13% bonds on June 30, 2010, at 104. The carrying value of the bonds at the redemption date was $127,750. The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded.
(b) Hutchinson, Inc., retired $216,000 face value, 13.9% bonds on June 30, 2010, at 99. The carrying value of the bonds at the redemption date was $237,600. The bonds pay annual interest, and the interest payment due on June 30, 2010, has been made and recorded.

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Accounting Basics, Accounting

Category:- Accounting Basics
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