Ask Question
14 April, 08:06

On January 1, 2020, Pharoah Corporation redeemed $640,000 of bonds at 99. At the time of redemption, the unamortized premium was $19,200. Prepare the corporation's journal entry to record the reacquisition of the bonds.

+3
Answers (1)
  1. 14 April, 08:08
    0
    The Journal entry is as follows:

    Bonds Payable A/c Dr. $640,000

    Premium on Bonds Payable A/c Dr. $19,200

    To Gain on Redemption of Bonds $25,600

    To Cash $633,600

    (To record the re-acquisition of the bonds)

    Working notes:

    Cash = $640,000 * 0.99

    = $633,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, 2020, Pharoah Corporation redeemed $640,000 of bonds at 99. At the time of redemption, the unamortized premium was $19,200. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers