Homework SourseOn January 1 2017 Sweet Corporation redeemed 550000 of bonds
On January 1, 2017, Sweet Corporation redeemed $550,000 of bonds at 98. At the time of redemption, the unamortized premium was $16,500. Prepare the corporation’s journal entry to record the reacquisition of the bonds. (If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Account Titles and Explanation Debit Credit
Solution
Journal entry :
| Date | accounts & explanation | Debit | credit |
| 2017 Jan 1 | Bonds payable | 550000 | |
| Premium on bonds payable | 16500 | ||
| Gain on redemption on bonds | 27500 | ||
| Cash a/c (550000*98/100) | 539000 | ||
| (To record reacquisition on bonds) |
