80.2K
Verified Solution
Link Copied!
Okano Medical Lab issued $300,000 in bonds at face value 10 years ago and has paid semiannual interest payments through the years.
| (a) | Assume the bonds are redeemed at face value. |
| (b) | Assume that $25,000 of the bonds are redeemed at 103. |
| (c) | Assume that $25,000 of the bonds are redeemed at 97. |
Required:
| | Prepare the journal entries to record (a), (b), and (c). |
CHART OF ACCOUNTSOkano Medical LabGeneral Ledger
| | ASSETS |
| 101 | Cash |
| 122 | Accounts Receivable |
| 141 | Supplies |
| 181 | Office Equipment |
| | LIABILITIES |
| 202 | Accounts Payable |
| 219 | Wages Payable |
| 252 | Bonds Payable |
| | EQUITY |
| 321 | Common Stock |
| 322 | Paid-In Capital in Excess of Par-Common Stock |
| 329 | Paid-In Capital from Sale of Treasury Stock |
| 331 | Retained Earnings |
| 333 | Cash Dividends |
| | REVENUE |
| 401 | Sales |
| 417 | Gain on Bonds Redeemed |
| | EXPENSES |
| 511 | Wages Expense |
| 512 | Advertising Expense |
| 513 | Bank Credit Card Expense |
| 514 | Store Supplies Expense |
| 515 | Travel and Entertainment Expense |
| 549 | Miscellaneous Expense |
| 554 | Loss on Bonds Redeemed |
Prepare the journal entries to record (a), (b), and (c) on December 31.
(a) Assume the bonds are redeemed at face value.
General Journal Instructions
PAGE 1
GENERAL JOURNAL
| | DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT |
| 1 | | | | | |
| 2 | | | | | |
(b) Assume that $25,000 of the bonds are redeemed at 103.
PAGE 1
GENERAL JOURNAL
| | DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT |
| 1 | | | | | |
| 2 | | | | | |
| 3 | | | | | |
(C) Assume that $25,000 of the bonds are redeemed at 97.
PAGE 1
GENERAL JOURNAL
| | DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT |
| 1 | | | | | |
| 2 | | | | | |
| 3 | | | | | |
Answer & Explanation
Solved by verified expert
