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Horngren'S Financial And Managerial Accounting
Found in: Page 655

Short Answer

What is the journal entry to retire bonds at maturity?

Bond payable is debited and cash credited to record the retirement of bond.

See the step by step solution

Step by Step Solution

Step 1: Definition of bond retirement

The bonds are retired when the maturity period of the bonds is completed.

Step 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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