Question

On December 31, a $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000 Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of accountitles.

Answer 1

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. $ $ 1,500,000.00 25,100.00 Dec.31 Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash |(To record redemption of Bonds Payable) 70,100.00 1,455,000.00 $