Exercise 10-14 (Part Level Submission) The situations presented here are indepen

Question

Exercise 10-14 (Part Level Submission) The situations presented here are independent of each other. For each situation, prepare the appropriate journal entry for the redemption of the bonds. Cheyenne Corp. redeemed $150,000 face value, 9% bonds on April 30, 2017, at 104. The carrying value of the bonds at the redemption date was $135,536. The bonds pay annual interest, and the interest payment due on April 30, 2017, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Apr. 30

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Apr 30 Bonds payable 150000 Loss on redemption of bonds 20464 Discount on bonds payable 14464 Cash (150000*1.04) 156000 (To record redemption of bonds)

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