Delta Company issued bonds with a face amount of $1,500,000 in 2005

Accounting Mar 08, 2021

Delta Company issued bonds with a face amount of $1,500,000 in 2005. As of January 1, 2011, the unamortized discount on bonds payable is $4,800. At that time, Delta redeemed the bonds at 101.

Instructions

Assuming that no interest is payable, make the entry to record the redemption.

Expert Solution

Answer:

Jan. 1 Bonds Payable.......................................................................... 1,495,200

Loss on Bond Redemption....................................................... 19,800

Cash................................................................................. 1,515,000

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