Record the retirement of bonds with a face value

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Question - On December 31, 20x5, the balance sheet of Weig and Corporation reported bonds outstanding with a face value of $4,000,000 and a related unamortized premium of $120,000. Interest is payable semiannually on January 1 and July 1.

a. Prepare an entry in journal form without explanations to record the retirement of bonds with a face value of $2,400,000 (60% of the bonds) on January 1, 20x6, assuming the bonds were redeemed at a call price of 104.

b. Prepare an entry in journal form without explanation on January 1, 20x6, to record the conversion of bonds with a face value of $1,600,000 (40% of the bonds) into common stock. Each $1,000 bond is convertible into 30 shares of $20 par value common stock.

Reference no: EM131731463

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