Homework answers / question archive / Presented below are three independent situations: (a)    Howell Corporation purchased $350,000 of its bonds on June 30, 2011, at 102 and immediately retired them

Presented below are three independent situations: (a)    Howell Corporation purchased $350,000 of its bonds on June 30, 2011, at 102 and immediately retired them

Accounting

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Presented below are three independent situations:

(a)    Howell Corporation purchased $350,000 of its bonds on June 30, 2011, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $339,500. The bonds pay semiannual interest and the interest payment due on June 30, 2011, has been made and recorded.

(b)    Justice, Inc. purchased $400,000 of its bonds at 97 on June 30, 2011, and immediately retired them. The carrying value of the bonds on the retirement date was $393,000. The bonds pay semiannual interest and the interest payment due on June 30, 2011, has been made and recorded.

Instructions

For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds.