1. Chapter 15. Presented below are three independent situations. For each independent situation, prepare the...
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1. Chapter 15. Presented below are three independent situations. For each independent situation, prepare the appropriate journal entry for the redemption of the bonds. a) Longbine Corporation redeemed $130.000 face value. 12% bonds on June 30, at 102. The carrying value of the bonds at the redemption date was $117,500. The bonds pay annual interest, and the interest payment due on June 30, has been made and recorded. b) Tastove Inc. redeemed $150,000 face value, 12.5% bonds on June 30, at 98. The carrying value of the bonds at the redemption date was $151,000. The bonds pay annual interest, and the interest payment due on June 30, has been made and recorded. c) Precision Company has $80,000, 8%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay annual interest on December 31 of each year. The bonds are convertible into 30 shares of Precision $5 par value common stock for each $1,000 worth of bonds. On December 31, after the bond interest has been paid, $20,000 face value bonds were converted. The market price of Precision common stock was $44 per share on December 31
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