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The December 31,2018 balance sheet of ABC Co. included the following items: 7.5% bonds payable due...

The December 31,2018 balance sheet of ABC Co. included the following items:

7.5% bonds payable due December 31,2021. $320,000.

Unamortized discount on bonds payable. $8,400

The Bonds were issued on December 31,2013, at 95, with interest payable on June 30 and December 31. On January 1,2019, ABC retired the bonds at 101.

Required: Prepare journal entry for the retirement of bonds.

Ex. 6- Retirement of bonds - Homework problem The December 31, 2018 balance sheet of ABC Co. included the following items: 7.
Ex. 6- Retirement of bonds - Homework problem The December 31, 2018 balance sheet of ABC Co. included the following items: 7.5% bonds payable due December 31, 2021 $320,000 Unamortized discount on bonds payable 8,400 The bonds were issued on December 31, 2013, at 95, with interest payable on June 30 and December 31. On January 1, 2019, ABC retired the bonds at 101.
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Answer #1

Solution:

Particulars Debit Credit
7.5% Bonds Payable 320,000
Loss on Retirement of Bonds 11,600
Unamortized Discount on Bonds Payable 8,400
Cash (320,000 * 1.01) 323,200
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