Casey Company retired $500,000 face value, 9% bonds on June 30, 2021 at 96. The carrying value of the bonds at the redemption da

Question

2 years ago

6

te was $508,000. Prepare the journal entry to record the redemption of the bonds.

1 answer:

Annette [7] · Answer 1 · 2023-05-29T10:37:04+03:00

Based on the information given the appropriate journal entry to record the redemption of the bonds is:

Casey Company Journal entry

June 30, 2021

Debit Bonds payable $500,000

Debit Premium on bonds payable $8,000

($508,000-$500.000)

Credit Gain on bond redemption $28,000

($508,000 - $480,000)

Credit Cash $480,000

($500,000 x 96%)

(To record redemption of the bonds)