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.)
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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![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.)
No. Date
Account Titles and Explanation
June 30,
1.
Bonds Payable
2021
2.
June 30,
2021
Loss on Bond Redemption
Cash
(To record redemption of bonds.)
Bonds Payable
Gain on Bond Redemption
Cash
(To record redemption of bonds.)
Debit
Credit
124800](https://content.bartleby.com/qna-images/question/1a6dff2a-a390-46e3-ad39-00533c1367d9/0b0c1d3e-b503-407e-aa8a-f0a6cc46e9bf/pip7ggf_thumbnail.png)
Transcribed Image Text: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.)
No. Date
Account Titles and Explanation
June 30,
1.
Bonds Payable
2021
2.
June 30,
2021
Loss on Bond Redemption
Cash
(To record redemption of bonds.)
Bonds Payable
Gain on Bond Redemption
Cash
(To record redemption of bonds.)
Debit
Credit
124800
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