Presented below are two independent situations:
a. On December 31, 2014, Legault Corporation had $1,000,000, 8% bonds payable issued. The bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2018. On January 2, 2015, Legault redeemed 60% of these bonds at 101 The amortized cost of the entire bond issue on the retirement date was $1,026,000. The interest payment due on January 1, 2015, has been made and recorded.
b. Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2014. The amortized cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest and the interest payment due on December 31, 2014, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entries to record the retirement of the bonds.

Question

Quizplus · Accepted Answer

The Answer of Presented below are two independent situations:
a. On December 31, 2014, Legault Corporation had $1,000,000, 8% bonds payable issued. The bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2018. On January 2, 2015, Legault redeemed 60% of these bonds at 101 The amortized cost of the entire bond issue on the retirement date was $1,026,000. The interest payment due on January 1, 2015, has been made and recorded.
b. Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2014. The amortized cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest and the interest payment due on December 31, 2014, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entries to record the retirement of the bonds.

Presented Below Are Two Independent Situations