Mara Company reported the following accounts on December 31,2021: Premium on bonds payable 50,000 Accrued interest on bonds payable 180,000 Bonds payable, due January 1,2026, interest at 12% payable semiannunuallly on January 1 and July 1 3,000,000 On December 31,2021, cash of P3,900,000 was made available from the issue of 10-year 10% bonds payable with face amount of P4,000,000 The cash receive from the new issue was used for retirement of the 12% bonds payable at a call price of 102 plus accrued interest. Required: Prepare journal entries to record the bond refunding.
Mara Company reported the following accounts on December 31,2021: Premium on bonds payable 50,000 Accrued interest on bonds payable 180,000 Bonds payable, due January 1,2026, interest at 12% payable semiannunuallly on January 1 and July 1 3,000,000 On December 31,2021, cash of P3,900,000 was made available from the issue of 10-year 10% bonds payable with face amount of P4,000,000 The cash receive from the new issue was used for retirement of the 12% bonds payable at a call price of 102 plus accrued interest. Required: Prepare journal entries to record the bond refunding.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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Question
Mara Company reported the following accounts on December 31,2021:
Premium on bonds payable 50,000
Accrued interest on bonds payable 180,000
Bonds payable, due January 1,2026, interest at 12% payable semiannunuallly on January 1 and July 1 3,000,000
On December 31,2021, cash of P3,900,000 was made available from the issue of 10-year 10% bonds payable with face amount of P4,000,000
The cash receive from the new issue was used for retirement of the 12% bonds payable at a call price of 102 plus accrued interest.
Required:
Prepare
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