View Full Version : The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 2012,
 
 oceaniaa19
Mar 20, 2012, 06:21 AM
Prepare the July 1, 2013 journal entries on the books of Rodman Company to record: (a) payment of interest, (b) the amortization of the discount since December 31, 2012, and (3) the early retirement. If an amount box does not require an entry, leave it blank. 
 
I have done the journal entry but cannot figure out how to calculate them...
 oceaniaa19
Mar 20, 2012, 06:26 AM
Retirement of Debt before Maturity
 
 The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 2012, included 8% bonds payable of $600,000 less unamortized discount of $44,000. Further examination revealed that these bonds were issued to yield 11%. The amortization of the bond discount was recorded using the effective-interest method. Interest was paid on January 1 and July 1 of each year. On July 1, 2013, Rodman retired the bonds at 104 before maturity.
 
Prepare the July 1, 2013 journal entries on the books of Rodman Company to record: (a) payment of interest, (b) the amortization of the discount since December 31, 2012, and (3) the early retirement. If an amount box does not require an entry, leave it blank.
 Curlyben
Mar 20, 2012, 08:37 AM
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 BethStaton
Aug 26, 2013, 05:29 AM
I also am having a great deal of trouble with this question
This is what I have 
a) interest expense.     $24,000
          Cash.                         24,000
 
b) interest expense.      30,580
          Discount on bonds payable.       30,580
 
c) loss on early retirement of bond.      68,0000
    Bond payable.                                  600,000
           Discount on bond payable                         30,580
            Cash.                                                       637,420
 
I know I'm wrong I just can't figure out why 
Thanks
Beth