On January 1, 2017, Sweet Corporation redeemed $550,000 of bonds at 98. At the t
ID: 2604605 • Letter: O
Question
On January 1, 2017, Sweet Corporation redeemed $550,000 of bonds at 98. At the time of redemption, the unamortized premium was $16,500. Prepare the corporation’s journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Account Titles and Explanation Debit Credit
Explanation / Answer
Journal entry :
Date accounts & explanation Debit credit 2017 Jan 1 Bonds payable 550000 Premium on bonds payable 16500 Gain on redemption on bonds 27500 Cash a/c (550000*98/100) 539000 (To record reacquisition on bonds)