Ask Experts Questions for FREE Help !
    rozaola's Avatar
    rozaola Posts: 3, Reputation: 1
    New Member

    Jun 12, 2008, 12:54 PM
    what does it mean : bond were retired?
    During the year bonds with a face value of $180,000 were retired.

    I need to write a transaction
    Can you help me?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    Jun 12, 2008, 06:56 PM
    It means they paid them off. The $180,000 is in your bonds payable and it has to come out.

    But there's too little information here. They don't necessarily retire them at $180,000. You need to know how much they retired them for, and you need to know the current carrying value. The difference between the carrying value and what they retired them for creates a gain or loss. You have to remove the bond payable and any premium or discount, the cash that was paid to retire them, and then the gain or loss.
    RomaFerrari's Avatar
    RomaFerrari Posts: 6, Reputation: 1
    New Member

    Jul 14, 2012, 08:47 PM
    2008 2007
    Cash $ 36000 31000
    Accounts receivable (net) 80000 60000
    Prepaid Insurance 25000 17000
    Land 18000 40000
    Equipment 70000 60000
    Accumulated Depreciation (20000) (13000)
    Total Assets 209000 195000

    Liabilities and Stockholder’s Equity
    Accounts Payable 11000 6000
    Bonds Payable 27000 19000
    Common Stock 140000 115000
    Retained Earnings 31000 55000
    Total Liabilities and Stockholder’s equity 209000 195000

    Additional information:
    1. Net loss for 2008 is $15,000.
    2. Cash dividends of $9,000 were declared and paid in 2008.
    3. Land was sold for cash at a loss of $7,000. This was the only land transaction during the year.
    4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
    5. $12,000 of bonds were retired during the year at carrying (book) value.
    6. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was
    Prepare a statement of cash flows for the year ended 2008, using the indirect method

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Amide bond (peptide bond) [ 3 Answers ]

hello ever1 I don't know much about chemistry, so hlp me with this is amide bond (peptide bond), balanced chemical equation?

Retired? [ 7 Answers ]

This is funny too. ________________________________ ________________________________ What do retired people do all day?? Well , for example , the other day my wife and I wentinto town and went into a shop. We were only there for about 5 minutes. We came out , there was a cop writing out a...

Already Retired. [ 1 Answers ]

What catch-up general advice would you give someone (moneywise),who is retired, if that person missed the boat on investing, and , or attaining an IRA... but he is getting a pension ?

Retired Engineer :) [ 1 Answers ]

There was an engineer who had an exceptional gift for fixing all things mechanical. After serving his company loyally for over 30 years, he happily retired. Several years later the company contacted him regarding a seemingly impossible problem they were having with one of their multi-million...

View more questions Search