ACC 304 All Assignments ACC 304 All Assignments | Page 231

2)
On January 1, 2014, Henderson Corporation redeemed $572,100
of bonds at 97. At the time of redemption, the unamortized premium
was $17,163 and unamortized bond issue costs were $5,721.
Prepare the corporation’s journal entry to record the reacquisition of
the bonds. (If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
3) Shlee Corporation issued a 5-year, $70,300, zero-interest-bearing
note to Garcia Company on January 1, 2014, and received cash of
$70,300. In addition, Shlee agreed to sell merchandise to Garcia at an
amount less than regular selling price over the 5-year period. The
market rate of interest for similar notes is 12%.
Prepare Shlee Corporation’s January 1 journal entry. (Round answers to
0 decimal places, e.g. 38,548. If no entry is required, select "No Entry"
for the account titles and enter 0 for the amounts. Credit account titles
are automatically indented when amount is entered. Do not indent
manually.)
4)
The following items are found in the financial statements.