Question 2 10 points On August 1 2017 Jennifer Company retir

Question 2 (10 points) On August 1, 2017, Jennifer Company retired a $15,000 bond at 108. On July 31, 2017 Jennifer had accrued the interest payment for $300. At the date of retirement, the unamortized discount on the bonds was $500. Use this information to prepare the General Journal entry to record the retirement & accrued interest payment of the bond. (Round all dollar values to the nearest whole dollar.)

Solution

8/1/17

Bonds Payable $15,000

Interest Payable $300

Loss on Retirement of Bond $1,700

Discount on Bond Payable $500

Cash ($15,000 x 108%) + $300 $16,500