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Robinson, Inc. had outstanding $5,211,000 of 11% bonds




Question;Exercise 14-13Robinson, Inc. had outstanding $5,211,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,264,000 of 9%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds at 103 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were $133,000 and $36,400, respectively.Prepare the journal entries necessary to record (a) issue of the new bonds and (b) the refunding of the bonds. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.)No.Account Titles and ExplanationDebitCredit(a) (To record issuance of 9% bonds.)(b) (To record retirement of 11% bonds.)


Paper#41933 | Written in 18-Jul-2015

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