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Carpino Company issued €500,000 of bonds on January 1, 2011

Accounting

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Carpino Company issued €500,000 of bonds on January 1, 2011.

Instructions

1. Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100.
2. Prepare the journal entry to record the retirement of the bonds before maturity at 98. Assume the carrying value of the bonds was $505,000.