Question

The following information applies to the questions displayed below) On January 1, 2021, White Water issues $580,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7x and the bonds issued at $633 337 Part 2 of 2 2. If the market interest rate increases to 9% on December 31, 2023. will cost $537.963 to retire the bonds. Record the retirement of the bonds on December 31, 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Round your intermediate and final answers to the nearest whole dollar) View transactionist Journal entry worksheet Record the retirement of the bonds General Journal Debit Credit December 31, 2023

Answer 1

			Amount in $
No	Date	Genral Journal	Debit	Credit
Issuance of Bonds
1	1-Jan-21	Bank	633337
		To Bonds Payable		580000
		To Bonds Premium		53337
	Being 8% Bonds issued at a premium
Early Retirement of Bonds
2	31-Dec-23	Bonds Payable	580000
		To Bank		537963
		To Gain on Early redemption of Bonds		42037
	Being early retirement of Bonds done
3	31-Dec-23	Bonds Premium	53337
		To Interest Income		53337
	Being Bond Premium amount transferred to Interest Recd Accont