ral years ago, Nicole Company issued bonds with a face value of $1,100,000 for $

Question

ral years ago, Nicole Company issued bonds with a face value of $1,100,000 for $995,000. As a resut of decdining interest rates, the company has decided to call the bond at a call premium of 5 percent over par The bonds have a current book $1,076,000. Record select "No journal entry required" in the first account field.) the retirement of the bonds, using a discount account. (If no entry is required for a transaction/event, value of View transaction Iist Journal entry worksheet Record the retirement of the bonds Transaction General Journal Debit Credit looord entry Clear entry View genaral Journal

Explanation / Answer

Note :

Journal Entry

Transaction General Journal Debit ($) Credit ($) 1 Bonds Payable 1,100,000 Loss on retirement of bonds $79,000 Discount on bonds payble 24,000 Cash 1,155,000 (To record retirement of bonds payable at premium)

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