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Alona [7]
3 years ago
7

Oriole Company issued $476,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $454,

580, the company redeemed the bonds at 97. Prepare the entry to record the redemption of the bonds.
Business
1 answer:
Anna35 [415]3 years ago
6 0

Answer:

Date   Account and Explanation          Debit         Credit

           Bonds payable                         $476,000

           Loss on bond redemption       $7,140

           (461,720 - 454,580)

                    Cash                                                     $461,720

                     (476,000 * 0.97)

                     Discount on bonds payable               $21,420

                     (476,000 - 454,580)  

           <em>(To record redemption of the bonds)</em>

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