how to calculate Non-Current Liabilities?

The situations presented here are independent of each other.

For each situation prepare the appropriate journal entry for the redemption of the bonds.

Whitewater Rafting Ltd redeemed $130 000 face value, 12% debentures on 30 June 2007 at 102. The carrying value of the debentures at the redemption date was $130 000. The debentures pay half-yearly interest, and the interest payment due on 30 June 2007 has been made and recorded. (For multiple debit/credit entries, list accounts in order of magnitude.)

Date Account / Description Debit Credit

June 30 $

$

Coopers Ltd redeemed $180 000 face value, 12.5% debentures on 30 June 2006, at 98. The carrying value of the debentures at the redemption date was $180 000. The debentures pay half-yearly interest, and the interest payment due on 30 June 2006 has been made and recorded.

Date Account / Description Debit Credit

June 30 $

$

$

1 Answer

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  • Sandy
    Lv 7
    9 years ago
    Favorite Answer

    Whitewater Rafting Ltd

    Dr Bonds payable $130 000

    Dr Loss on redemption of bonds 2,600

    Cr Cash 132,600 ($130 000 x 102%)

    Coopers Ltd redeemed

    Dr Bonds payable $180 000

    Cr Cash 176,400 ($180 000 x 98%)

    Cr Gain on redemption of bonds 3,600

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