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Home > Business & Careers > Accounting   »   Bond Retirements

 
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Old Dec 3, 2007, 09:46 AM
jevitts20
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Bond Retirements

A corporation issued 8% bonds with a par value of
1,000,000, receiving a 20,000 premium. On the interest date
5 years later, after the bond interest was paid and after
40% of the premium had been written off, the corporation
purchased the entire issue on the open market and 99 and
retired it. The entry to record this retirement would be:?

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