This flashcard is just one of a free flashcard set. See all flashcards!
20
What is necessary to retire a bond before maturity? (basically the JE)
1) Record "Amortization of Premium" or "Amortization of Discount" (up to date)
2) Record Retirement of Bonds:
i. Debit "Bonds Payable" (@ FV)
ii. Remove "Unamortized Premium" with Debit
or
Remove "Unamortized Discount" with Credit
iii. Record "Cash" (@ Retirement Price)
iv. Record "Gain on Retirement" with a Credit
or
Record "Loss on Retirement" with a Debit
2) Record Retirement of Bonds:
i. Debit "Bonds Payable" (@ FV)
ii. Remove "Unamortized Premium" with Debit
or
Remove "Unamortized Discount" with Credit
iii. Record "Cash" (@ Retirement Price)
iv. Record "Gain on Retirement" with a Credit
or
Record "Loss on Retirement" with a Debit
Flashcard info:
Author: savhighsmith
Main topic: Accounting
Topic: General
School / Univ.: UGA
City: Athens
Published: 01.05.2010