Hello, I need help with the following question(s): Ch 10 Exercise ? ? ??Secure l

Question

Hello, I need help with the following question(s):

Ch 10 Exercise ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html x®G Hello, l Need Help with Ch 10 Exercises Help Save & Exit Submit Saved Check my work 16 Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following information applies to the questions displayed below Part 7 of7 2.72 pcinis On January 1, 2017 Shay issues $700,000 of 10%, 15-year bonds at a price of 9734. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104½ All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount. eBook Hint Exercise 10-9 Part 7 Piint References7. Prepare the journal entry to record the bond retirement at January 1, 2023 View transaction list Journal entry worksheet Mc Graw ?Prex 16 of 16 Untitled Paint 641 PM O Type here to search R ^ 41)) 7/24/2018

Explanation / Answer

Maturity value of Bonds 700000 Issue price (7000*97.75) 684250 Total Discount 15750 Discount amortized annualy (15750/15) 1050 Discount amortized in 6 years 6300 Unamortized discount 9450 Bonds retired 20% Par value of 20% bonds (700000*20%) 140000 Unamortized discountt for 20% (9450*20%) 1890 Book value of bonds retired 138110 Redemption value (1400*104.50) 146300 Loss on redemption 8190 Journal entry: Bonds payable Dr. 140000 Loss on retirement of bonds Dr. 8190     Discount n Bonds payable Account 1890     Cash account 146300

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.