Presented Below Are Two Independent Situations

question 25

Essay

Presented below are two independent situations:
a. Hillman Corporation redeemed $150,000 of its bonds on June 30, 2014, at 102. The amortized cost of the bonds on the retirement date was $137,700. The bonds pay semi-annual interest and the interest payment due on June 30, 2014, has been made and recorded.
b. Dalton Inc. redeemed $200,000 of its bonds at 96 on June 30, 2014. The amortized cost of the bonds on the retirement date was $196,500. The bonds pay semi-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 entries to record the retirement or conversion of the bonds.

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Definitions:

Intrusive

Unwanted and disruptive thoughts, images, or impulses that invade an individual's consciousness, often causing significant distress.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, leading to inflexibility and inefficiency.

Stingy

Reluctant to spend or give; showing a lack of generosity.

Avoidant Personality Disorder

A mental health condition characterized by a long-standing pattern of extreme sensitivity to rejection, social inhibition, and feelings of inadequacy.