Prepare journal entry to record the retirement of Bonds
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A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond issue on the open market at 98 and retired it. Prepare the journal entry to record the retirement of these bonds
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The solution prepare the journal entry to record the retirement of the bonds.
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Entry will be
Debit Bonds Payable - 2,072,000 (2000000 + 60% ...
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