Brief Exercise 10-11 The balance sheet for Blossom Company reports the following

Question

Brief Exercise 10-11 The balance sheet for Blossom Company reports the following information on July 1, 2017 BLOSSOM COMPANY Balance Sheet (partial) Long-term liabilities $3,200,000 Bonds payable Less: Discount on bonds payable 72,000 $3,128,000 Blossom decides to redeem these bonds at 107 after paying annual interest. Prepare the ournal entry to record the redemption on July 1 20 17 Credit account titles are automatica y de ed en an unt se ere Do not iden manua Date Account Titles and Explanation Debit Credit uly 1

Explanation / Answer

Date Particulars Dr Cr Jul-01 Bond Payable 3200000 Loss on Bond redemption 296000 To discount on bond payable 72000 To cash (3200000*1.07) 3424000

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