Journal Entry for Bond Redemption
Not what you're looking for?
BE10-7
The balance sheet for Reading Company reports the following information on July 1, 2010.
READING COMPANY
Balance Sheet (partial)
Long-term liabilities
Bonds payable $2,000,000
Less: Discount on bonds payable 30,000
$1,970,000
Reading decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2010. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Jul 1 Date Account/Description/ Debit/ Credit
Purchase this Solution
Solution Summary
This solution illustrates the journal entry to be made to redeem bonds before they mature.
Solution Preview
Because the annual interest has already been paid, we need only record the actual redemption of the bonds. The bonds will be redeemed for $2,040,000 ($2,000,000*1.02). The book value ...
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media