Question

n calls honds having a face valten redemption of the bonds y to record the accrual of interest on December 31, 2020. prion E10.13 (LO 3) The following are independent sitaations of bonds, 1. Longbine Corporation redeemed $130,000 face value, 12% bonds on June 30, 2020, at 102. The carrying value of the bonds at the redemption date was S117.500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. 2. Tastove Inc. redeemed S150,000 face value, 12.5% bonds on June 30, 2020, at 98. The carrying value of the bonds at the redemption date was $151,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. Instructions For each independent situation above. prepare the appropriate journal entry for the redemption or con- version of the bonds. E10.14 (10 4) Prepare entries to record mortgage note and payments

Answer 1

S. No.	Date	Accounts title and Explanations	Debit ($)	Credit ($)
1	30-Jun	Bonds Payable	$ 130,000.00
		Loss on Bonds Redemption	$   15,100.00
		Cash ($130,000 * 102%)		$ 132,600.00
		Bonds Discount ($130,000 - $117,500)		$    12,500.00
2	30-Jun	Bonds Payable	$ 150,000.00
		Premium on Bonds ($151,000 - $150,000)	$     1,000.00
		Cash ($150,000 * 98%)		$ 147,000.00
		Gain on Bonds redemption		$      4,000.00