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Elanso [62]
3 years ago
9

Pizza Pier retires its 8% bonds for $70,100 before their scheduled maturity. At the time, the bonds have a face value of $72,100

carrying value of $74,950. Record the early retirement of the bonds.
Business
1 answer:
mariarad [96]3 years ago
5 0

Answer: Please refer to Explanation

Explanation:

DR Bonds Payable ............... $ 72,100

DR Premium on Bonds Payable (74,950 - 72,100) ...... $2,850

CR Cash ...................................... $70,100

CR Gain on Discharge of Bonds ($74,950 - $70,100) $4,850

(To record retirement of premium bond before time)

If you need any clarification do comment.

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