# Problem 14-15 Early extinguishment; effective interest [LO14-5 The long-term liability section of Twin Digital Corporation's balance...

Problem 14-15 Early extinguishment; effective interest [LO14-5 The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2017, included 12% bonds having a face amount of $35 million and a remaining discount of$1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 104 ($36.4 million) before their scheduled maturity 1.&2. Prepare the necessary journal entries for Twin Digital on July 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) Journal entry worksheet Debit July 01, 2018 Problem 14-15 Early extinguishment; effective interest [LO14-5) The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2017, included 12% bonds having a face amount of$35 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 104 ($36.4 million) before their scheduled maturity Required 1.& 2. Prepare the necessary journal entries for Twin Digital on July 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) View transaction list Journal entry worksheet Record the redemption of the bonds. Date July 01, 2018

 July-1-18 Interest expense 2,450,000 =35000000*14%/2 Discount on bonds payable 350,000 Cash 2,100,000 =35000000*12%/2 July-1-18 Bonds payable 35,000,000 Loss on early extinguishment 2,050,000 Discount on bonds payable 650000 =1000000-350000 Cash 36,400,000
##### Add Answer to: Problem 14-15 Early extinguishment; effective interest [LO14-5 The long-term liability section of Twin Digital Corporation's balance...
Similar Homework Help Questions
• ### Problem 14-15 Early extinguishment; effective interest [LO14-5] The long-term liability section of Twin Digital Corporation’s balance...

Problem 14-15 Early extinguishment; effective interest [LO14-5] The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2017, included 14% bonds having a face amount of $35 million and a remaining discount of$1 million. Disclosure notes indicate the bonds were issued to yield 16%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 102...

• ### 2 Problem 14-15 Early extinguishment; effective interest [L014-5] 2.5 of Twin Digital Corporation's balance sheet as...

2 Problem 14-15 Early extinguishment; effective interest [L014-5] 2.5 of Twin Digital Corporation's balance sheet as of December 31, 2017, included 10% bonds million and a remaining discount of $1 milion. Disclosure notes indicate the bonds were issued to Interest expense Is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 103 ($51.5 million) before their scheduled maturity. Print Required: References 1.&2.Prepare...

The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2017, included 12% bonds having a face amount of $30 million and a remaining discount of$1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 102 ($30.6 million) before their scheduled maturity. Required:... • ### Early Extinguishment/Effective Interest The long term liability section of Twin Digital Corporation's balance sheet as of December 31, 2010, included 12% bonds having a face amount of$20 million and aremaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 each year. On July 1, 2011, Twin Digital retired the bonds at 102 ($20.4million) before their scheduled maturity.1. Prepare the journal entry...

Free Homework App