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animal world issues ten-year bonds at their face amount of $100 million with the option to call the bonds at $102 million. two years later, interest rates have decreased and animal world decides to call the bonds. the company estimates that over the next eight years, they will save $16 million of cash interest. the journal entry to retire the bonds will include a:

Respuesta :

the journal entry to retire the bonds will include a Loss of $2 million.

Insured or unsecured bonds are both possible. Bonds can also be serial or term bonds. Which one is less typical?

Bonds have two different options: secured and serial.

What Function Does a Journal Entry Serve?

A diary is a list of transactions that are made as they happen and that identify the specific accounts that are impacted. Journal entries are used in double-entry accounting, where each entry needs both a debit and a credit to be complete. Therefore, when you purchase products, the inventory and accounts payable accounts are both increased.

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