Brief Exercise 10-11 The balance sheet for Wildhorse Co. reports the following i

Question

Brief Exercise 10-11 The balance sheet for Wildhorse Co. reports the following information on July 1, 2017. WILDHORSE CO. Balance Sheet (partial) Long-term liabilities Bonds payable Less: Discount on bonds payable $4,200,000 94,500 4,105,500 Wildhorse decides to redeem these bonds at 109 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation uly 1 Debit Credit SHOW LIST OF ACC INTERACTIVE TUTORIAL LINK TO TEXT served. A Division of John Wiley & So I I 2000-2017 1ohn Wiley & Sons, Inc. All Rights Re Privacy Policy 2

Explanation / Answer

10-11) Journal entry :

Date accounts & explanation debit credit Bonds payable 4200000 Loss on redemption of bonds 472500 Discount on bonds payable a/c 94500 Cash a/c (4200000*109/100) 4578000 (To record maturity of bonds)

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