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1) Prepare journal entries to record the following retirement.

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1) Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.)
The December 31, 2010 balance sheet of Wolfe Co. included the following items:
7.5% bonds payable due December 31, 2018 $1,200,000
Unamortized discount on bonds payable 48,000

The bonds were issued on December 31, 2008 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)

On April 1, 2011, Wolfe retired $240,000 of these bonds at 101 plus accrued interest.

2) Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co.
(a) On April 1, 2009, Quirk issued $500,000, 9% bonds for $537,868 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2019.
(b) On July 1, 2011 Quirk retired $150,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization

Submitted: 6 years ago.
Category: Homework
Expert:  Neo replied 6 years ago.

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