Presented Below Are Two Independent Situations

question 45

Essay

Presented below are two independent situations:
(a) Morten Corporation purchased $480,000 of its bonds on June 30, 2014, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $431,100. The bonds pay annual interest and the interest payment due on June 30, 2014, has been made and recorded.
(b) McEvoy, Inc., purchased $330,000 of its bonds at 96 on June 30, 2014, and immediately retired them. The carrying value of the bonds on the retirement date was $321,000. The bonds pay annual interest and the interest payment due on June 30, 2014, 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.

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Definitions:

Elements of Unsaturation

Calculations used to determine the degree of unsaturation within a molecule, indicating the presence of rings, double bonds, or triple bonds.

Aromatic Ring

A cyclic (ring-shaped), planar (flat) molecule with a ring of resonance bonds that gives it stability and unique chemical properties, commonly found in benzene.

M-Xylene

An aromatic hydrocarbon with two methyl groups attached to a benzene ring at the meta positions.

Relative Integrations

A concept in spectroscopy referring to the comparative measurement of signal areas to determine the ratio of different types of protons or other nuclei in a molecule.