Bonds - Retirment

Question 1

Bond retirement journal entry - loss

Answer 1

Bonds payable (D)
Loss on Bond Extinguishment (D)
     Bond Discount
     Bond Issue Costs
     Cash paid for called bonds

Bond payable = face amount
Loss/gain = plug
Bond discount = discount x remaining years to total years to maturity ratio
Bond issue costs = issue costs x remaining years to total years to maturity ratio
Cash = face value x amount called at