Bond retirement

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 (Bond Retirement) Simply Lemonade had outstanding $5 million of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7 million of 10% 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds were used to call the 11% bonds at 102 on August 1. Unamortized bond discount and issue costs applicable to the 11% bonds were $120,000 and $30,000, respectively. Prepare the journal entry necessary to record the retirement of the 11% bonds.

Reference no: EM131294537

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