The 12/31/2012 balance sheet of abc corp. reported 10% bonds payable with a face amount of $100 million. the bonds were issued in 2000 and had a remaining discount of $1,200,000 at 12/31/2012. on 01/01/2013, abc corp. called the bonds at a price of 103. what entry will abc make on 01/01/2013 to retire the bonds?

JOURNAL ENTRIES:

Debit: Bonds payable $100,000,000

Debit: Loss on bond retirement $4,200,000

Credit: Discount on bonds payable $1,200,000

Credit: Cash $103,000,000

Explanation:

The bonds were retired at 103. Therefore they have been paid $100 million x 1.03 = $103 million to retire the bonds.

$103 million would be credit to cash.

Other journal entries include:

Debit to Bonds payable of $100 million.

Credit to Discount on bonds payable of $1,200,000.

So you have a credit of $103 million a credit of $1,200,000 and a debit of $100 million. To make debits equal credits, you need a debit of $4,200,000. And this would be a loss on bond retirement.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.