JournaldrillRetiring bonds at maturity
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Granite Ridge Utilities' $250,000 of bonds reach maturity today. Any premium or discount has been fully amortized and the final interest payment has already been recorded. Record the repayment of the bonds.
What this exercise teaches
With no discount or premium left, the carrying value is the $250,000 face value. Paying it removes the liability with no gain or loss.
A hint if you get stuck
At maturity carrying value equals face value, so only the liability and cash move.
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