chapter 10: Long-Term Liabilities Record the retirement of bonds. Knowledge Chec
ID: 2558766 • Letter: C
Question
chapter 10: Long-Term Liabilities Record the retirement of bonds. Knowledge Check 02 Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carryir value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry by selecting the account name and dollar amounts from the drop-down menus. Date Account Title Debit Credit Sept. 30 select le seleat pelect Discount on Bonds Payable select select select select select Cash select selectExplanation / Answer
Knowledge Check 02
Date
Account Titles and Explanation
Debit
Credit
Sept.30
Bonds Payable
$1,000,000
Loss on Retirement of Bonds
$10,000
Discount on Bonds Payable
$10,000
Cash
$1,000,000
Knowledge Check 03
Dec.31
Bonds Payable
$900,000
Common Stock (90,000 Shares x Par Value $6)
$540,000
Additional Paid in Capital in excess of par (Bal. fig)
$360,000
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Date
Account Titles and Explanation
Debit
Credit
Sept.30
Bonds Payable
$1,000,000
Loss on Retirement of Bonds
$10,000
Discount on Bonds Payable
$10,000
Cash
$1,000,000
Knowledge Check 03
Dec.31
Bonds Payable
$900,000
Common Stock (90,000 Shares x Par Value $6)
$540,000
Additional Paid in Capital in excess of par (Bal. fig)
$360,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.