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The Long-Term Debt section of Rodman Companys 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... |
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Retirement of Debt before Maturity
Retirement of Debt before Maturity
The Long-Term Debt section of Rodman Companys 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. |
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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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