help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / DISTAFF & SPEAR, Inc

DISTAFF & SPEAR, Inc

Finance

DISTAFF & SPEAR, Inc., issued $250,000 of 8%, 15-year bonds at 104 on July 1, 2007. Interest is payable semi-annually on December 31 and June 30. Through June 30, 2014 DISTAFF & SPEAR amortized $3,186 of the bond premium. On July 1, 2014 DISTAFF & SPEAR retired the bonds at 99.

(a)

Prepare journal entries to record the (i) issue (3 marks) and (ii) retirement of these bonds. (Assume the June interest expense has already been recorded.) (7 marks)

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Journal Entries:      
Date Account Titles  Debit Credit
July, 1 2007 Cash (250,000*104/100) 260000  
     Premium on Bonds Payable   10000
     8% Bonds Payable   250000
  (Being entry made to record the issue of bonds)    
       
July, 1 2014 8% Bonds Payable 250000  
  Unamortized Premium on Bonds (10,000-3,186) 6814  
     Profit on Redemption of Bonds   9314
      Cash (250,000*99/100)   247500
  (Being entry made to record the retirement of bonds)    
       
     

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)