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-   -   The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 2012, (https://www.askmehelpdesk.com/showthread.php?t=644774)

  • Mar 20, 2012, 06:21 AM
    oceaniaa19
    The Long-Term Debt section of Rodman Company’s balance sheet as of December 31, 2012,
    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...
  • Mar 20, 2012, 06:26 AM
    oceaniaa19
    Retirement of Debt before Maturity
    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.
  • Mar 20, 2012, 08:37 AM
    Curlyben
    Please refer to this announcement
    Quote:

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  • Aug 26, 2013, 05:29 AM
    BethStaton
    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

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