Jen Corporation retires its P 500,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is P 518,725. The entry to record the redemption will include a a. credit of P 18,725 to Loss on Bond Redemption b. debit of P 18,725 to Premium on Bonds Payable c. credit of P 6,725 to Gain on Bond Redemption d. debit of P 25,000 to Premium on Bonds Payable
Jen Corporation retires its P 500,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is P 518,725. The entry to record the redemption will include a a. credit of P 18,725 to Loss on Bond Redemption b. debit of P 18,725 to Premium on Bonds Payable c. credit of P 6,725 to Gain on Bond Redemption d. debit of P 25,000 to Premium on Bonds Payable
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...
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Jen Corporation retires its P 500,000 face
a. credit of P 18,725 to Loss on Bond Redemption
b. debit of P 18,725 to Premium on Bonds Payable
c. credit of P 6,725 to Gain on Bond Redemption
d. debit of P 25,000 to Premium on Bonds Payable
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