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    cc1990's Avatar
    cc1990 Posts: 2, Reputation: 1
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    #1

    Jun 6, 2012, 10:42 AM
    loss on retirement of bonds examples
    Hillman corporation purchased $150,000 of its bonds on June 30,2008, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $ 137,700. The bonds pay semi-annual interest and the interest payment due on June 30,2008, has been made and recorded.
    Prepare a journal entry to record the retirement.
    cc1990's Avatar
    cc1990 Posts: 2, Reputation: 1
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    #2

    Jun 6, 2012, 10:45 AM
    this is what I have so far

    face value = 150,000

    Carrying value = 137,700
    Market price paid to retire bons = 153,000
    Loss on retirement of bonds = 15,300

    Im just not sure how to write it as a journal entry
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    Jun 6, 2012, 03:40 PM
    The value of the bonds will be contained in liabilities and the loss much be carried to the P&L as an extraordinary item
    the elements here are an exising liability, the bank account and a loss
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