contestada

On January 1, 2020, Windsor Corporation redeemed $420,000 of bonds at 98. At the time of redemption, the unamortized premium was $12,600. Prepare the corporation’s journal entry to record the reacquisition of the bonds.

Respuesta :

Answer:

The Journal entry is as follows:

On January 1, 2020

Bonds Payable A/c                      Dr. $420,000

Premium on Bonds Payable A/c Dr. $12,600

                 To Gain on Redemption of Bonds   $21,000

                 To cash                                              $411,600

(To record the re-acquisition of the bonds)

Working Notes:

Cash = $420,000 × 0.98

         = $411,600

Otras preguntas