The balance sheet of Indian River Electronics Corporation as of December 31, 201
ID: 2539994 • Letter: T
Question
The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 11.25% bonds having a face amount of $91.3 million. The bonds had been issued in 2010 and had a remaining discount of $4.3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 104.
Required:
Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Explanation / Answer
Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018
Date accounts & explanation debit Credit Jan 1,2018 Bonds payable 91300000 Loss on redemption of bonds 7952000 Discount on bonds payable 4300000 Cash (91300000*1.04) 94952000 (To record redemption of bonds)Related Questions
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