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 Your answer is correct. 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 Bonds Payable 150000 Loss on Bond Redemption 20464 Discount on Bonds Payable 14464 Cash 156000

Explanation / Answer

(b)

Date Account titles and explanation Debit Credit Jun. 30 Bonds Payable $235,000 Premium on Bonds Payable($254,353 - $235,000) $19,353 Gain on Bond Redemption $21,703 Cash($235,000 * 0.99) $232,650

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