The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020,...
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The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 10% bonds having a face amount of $10 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 101 ($10.1 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 01, 2021 Interest expense Discount on bonds payable Cash 2 July 01, 2021 Bonds payable Loss on early extinguishment Discount on bonds payable Cash
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