Q14RQ
Question
What is the journal entry to retire bonds at maturity?
Step-by-Step Solution
Verified Answer
Bond payable is debited and cash credited to record the retirement of bond.
1Step 1: Definition of bond retirement
The bonds are retired when the maturity period of the bonds is completed.
2Step 2: Journal entry
The journal entry on the retirement of the bonds is passed by debiting the bonds payable account and crediting the cash account.
Date | Particulars | Debit | Credit |
| Bonds Payable | $XXX |
|
| Cash |
| $XXX |
| (Entry to record the payment of bonds) |
|
|
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