Nivan Co. issued $440,000 of 9 percent, 10-year, callable bonds on January 1, 20

Question

Nivan Co. issued $440,000 of 9 percent, 10-year, callable bonds on January 1, 2016, at their face value. The call premium was 4 percent (bonds are callable at 104). Interest was payable annually on December 31. The bonds were called on December 31, 2020. Required Prepare the journal entries to record the bond issue on January 1, 2016, and the bond redemption on December 31, 2020. Entries for accrual and payment of interest are not required. (If no entry is required View transaction list Journal entry worksheet Record the bond redemption on December 31, 2020. Note: Enter debits before credits Date General Journal Debit Credit December 31, 2020 This is a numeric cell, so please enter numbers only.

Explanation / Answer

Journal entry :

Date General Journal Debit credit Jan 1, 2016 Cash 440000 Bonds payable 440000 (To record bond issue) Dec 31,2020 Bonds payable(440000*1.04) 444000 Loss on redemption of Bonds payable 17600 Cash 457600 (To record bond redemption)

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.