Presented below are two independent situations:
(a) Howell Corporation purchased $700,000 of its bonds on June 30, 2014, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $679,000. The bonds pay semiannual interest and the interest payment due on June 30, 2014, has been made and recorded.
(b) Justice, Inc. purchased $400,000 of its bonds at 97 on June 30, 2014, and immediately retired them. The carrying value of the bonds on the retirement date was $393,000. The bonds pay semiannual interest and the interest payment due on June 30, 2014, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entry to record the retirement of the bonds.

Question

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The Answer of Presented below are two independent situations:
(a) Howell Corporation purchased $700,000 of its bonds on June 30, 2014, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $679,000. The bonds pay semiannual interest and the interest payment due on June 30, 2014, has been made and recorded.
(b) Justice, Inc. purchased $400,000 of its bonds at 97 on June 30, 2014, and immediately retired them. The carrying value of the bonds on the retirement date was $393,000. The bonds pay semiannual interest and the interest payment due on June 30, 2014, has been made and recorded.
Instructions
For each of the independent situations, prepare the journal entry to record the retirement of the bonds.

Presented Below Are Two Independent Situations