Robinson, Inc. had outstanding $5,211,000 of 11% bonds

Exercise 14-13

Robinson, Inc. had outstanding $5,211,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,264,000 of 9%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds at 103 on August 1. Unamortized bond discount and issue cost applicable to the 11% bonds were $133,000 and $36,400, respectively.

Prepare the journal entries necessary to record (a) issue of the new bonds and (b) the refunding of the bonds. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.
Account Titles and Explanation
Debit
Credit
(a)
(To record issuance of 9% bonds.)
(b)
(To record retirement of 11% bonds.)