A Company Calls $150,000 Par Value of Bonds with a Carrying

question 101

Essay

A company calls $150,000 par value of bonds with a carrying amount of $147,950. The company calls the bonds at $151,000. Prepare the journal entry to record the retirement of the bonds.

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Definitions:

Proprietorship

A business owned by a single individual who is responsible for its assets and liabilities.

Personal Assets

Items of value owned by an individual, including cash, real estate, investments, and personal property.

Accounting Records

Documentation and books involved in preparing financial statements, including ledgers, journals, and other evidence of transactions.

Allowance For Doubtful Accounts

A contra asset account on a company's balance sheet that represents the estimated portion of accounts receivable that may not be collectible.