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21 June, 10:11

Discount Pizza retires its 7% bonds for $65,000 before their scheduled maturity. At the time, the bonds have a face amount of $67,800 and a carrying value of $62,807. Record the early retirement of the bonds

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  1. 21 June, 12:03
    0
    Journal Entry

    Explanation:

    The Journal entry is shown below:-

    Bonds payable Dr, $67,800

    Loss on redemption of bonds Dr, $2,193

    To Bond discount amortization $4,993

    ($62,807 - $67,800)

    To Cash $65,000

    (Being bonds retirement is recorded)
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