On January 1, a company retired $800,000 face value bonds at a call price of 103. The bonds were originally issued for $848,000. On the retirement date the bonds had an unamortized premium of $28,352. The entry to retire the debt would include a
- debit to bonds payable for $828,352
- credit to cash for $853,203
- credit to gain for $4,352
- credit to premium for $28,352
- debit to loss for $52,203
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The Rest Of TheVideos
| 1 | Not completed | Interest Bearing Notes | 9 min |
| 2 | Locked | Non-interest Bearing Notes | 7 min |
| 3 | Not completed | Contingencies | 6 min |
| 4 | Locked | Intro to Bonds | 11 min |
| 5 | Locked | Discounts and Premiums | 8 min |
| 6 | Locked | Selling at a Discount | 8 min |
| 7 | Locked | Selling for a Premium | 9 min |
| 8 | Locked | Amortization | 22 min |
| 9 | Locked | Borrowing Cost | 7 min |
| 10 | Locked | Interacting with Market Rates | 6 min |
| 11 | Locked | Retiring Bonds | 10 min |
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Chapter 11Practice Problems
| Click Here to View All Problems at Once | View | ||
| 1 | Not completed | Bond Theory Multiple Choice | Easy |
| 2 | Locked | Liability Classification | Easy |
| 3 | Not completed | Bond Issue Prices | Moderate |
| 4 | Locked | Contingent Liabilities | Moderate |
| 5 | Locked | Contingent Liabilities - Warranties | Moderate |
| 6 | Locked | Coupon and Market Rates Multiple Choice | Moderate |
| 7 | Locked | Bond Amortization | Hard |
| 8 | Locked | Bond Retirement You are here. | Hard |