Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Two independent situations follow: 1. 2. Blossom Corporation redeemed $124,800 face value, 12% bonds on June 30, 2021, at 101. The bonds' amortized cost at the redemption date was $112,800. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. Pina Inc. redeemed $144,000 face value, 12.5% bonds on June 30, 2021, at 96. The bonds' amortized cost at the redemption date was $144,960. The bonds pay annual interest, and the interest payment due on June 30, 2021, has been made and recorded. For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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