In this presentation we will record the journal entry related to the retirement of Bonds. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. When we talk about the retirement of bonds we could just mean that the bond became due. It's the maturity date of the bond and therefore we're going to pay it back just like any other kind of loan any other kind of liability that became due and therefore retire the bond. However it could mean that we have a callable bond and we're retiring the bond at some date before the maturity date. So first we'll take a look at this in terms of it's a maturity date bond and we're just going to pay off the bond at the end of the time period. So and note that this type of transaction isn't one we often see in test questions because they're usually the more interesting stuff happens at the beginning of the bond. What's going to be the cost of the bond? What's the discount? How are you going to amortize the discount on the bond? What are the interest payments look like? The end of the bond is actually pretty straightforward because all we're going to do is pay off the bond amount in terms of journal entry perspective. We're just paying off the bond amount to let that look pretty much just like a loan. So let's see what we're talking about here. We have the information on the left side. We're going to record the journal entry here in our general journal and then post it to our worksheet, the worksheet being in order with the assets liability, equity, revenue and expenses, debits, positive, bracket, credits, bracketed or negative, debits minus the credits being zero, meaning debits equal the credits. Net income is currently the 700,000 minus the 17 or the 682, 832. So this is just to give us something in balance so that we can see when we post these what's going to be what happens generally to different types of accounts, the accounting equation and the individual accounts and net income. So we have 15 year bonds face amount 240. The issue price was 198, 484. The interest and the market rates here. And what we're saying now is we're going to retire the bond. Now if we look at the trial balance, what does that mean? It means that the bond is on the books for 240,000 and there is no discount or premium. Why? Because we're saying it's at the end, it's 15 years later now and we've already paid all the interest and we've amortized the discount down to zero. So in order to see that, if we look at our amortization table, the discount started at 41,516, which is 240,000 minus the cash that was received of 198,484. And then we lowered that discount every six months. And we recorded a journal entry lowering it by the 1,384. So the discount went away each time and it was going to the interest expense. So at the end of this whole time period, at the end of 15 years or 30 time periods at every six months, we are left with zero in terms of the discount and we have the 240 then is all that's left. So now if we look at the end, we can see that the 240 bond payable looks just like a loan basically. So we're paying back the loan at the end of the time period. There's no more interest. We're saying here that the interest payment has already been made. So all interest has been made, all of the amortization of the bond has been made. So we're just going to record the final entry to close out or eliminate the bond. So to do that, we're just going to say the bond payable has a credit balance. We're going to do the opposite thing to it and debit it. So I'm just going to copy, put the debit on top. We probably should have stopped, thought of cash first is cash affected. Yeah, we're paying back the bonds. So cash is going to go down. So I'm going to copy cash, put that on the bottom because it's going to be decreasing and the amount is just going to be for 240,000. So we'll debit 240 and credit 240. That's all there is to it. Now note that if you see this, some problems may combine the two. They may say, well, the final interest payments, the final amortization and the retirement of the bond is happening. And in that case, you would just record the final amortization journal entry, which would bring the discount fully down to zero and then the interest and then record the reduction of the bond paying off the bond. But the actual pain of the bond, if it's fully amortized, if it's the end of the time period, is similar to just paying off a note. If we were to record this then, we're going to go to the bond payable. We're going to record this here in H6 by saying equals and pointing to that 240, bringing the 240 down by 240 to zero, putting us out of balance. And then cash is going to be posted. Here's cash on our journal entry. Here it is in our worksheet in H3, where we say equals. Point it to the 240, bringing our cash down to 664 and that puts us back in balance. No effect on that income here. We're not dealing with any interest expense. We're just paying back the principal. Now we're paying back the principal. And note here what happened with this bond is we didn't pay any of the principal through the entire bond time period through that 15 years. What we did pay was interest. We paid the rent on the money. We didn't pay back the principal on the money. Now we're paying back the original principal. Now the other way this could happen, if we could retire the bond early, if it's a callable bond, and so we could retire it before the maturity date. And if that's the case, then a book problem will typically give you what we're going to retire it for. In other words, it'll have to give us the amount that we're going to pay in order to retire the bond at this point in time. And once we have that, all we got to do is eliminate the bond from the books and any difference will be a gain or a loss. So in other words, if we have a trial balance, it'll show us this information. If we're talking about a book problem, it'll have to give us what we're going to retire it for, the cash we're going to pay. And then the bond amount as well as any discount or premium. Ours are going to be given here with the trial balance. So in other words, we can go through our questions, is cash affected? Yeah, we're going to retire the bond by paying it off early. So we're going to pay the $230,000. So I'm going to copy cash, and I'm going to put that on the bottom. So I'm going to skip four lines and put it on B23, just because I happen to know there's going to be four accounts. Right click and paste 123. And again, if you're building this yourself from scratch, you might put the cash on top and credit it. Even though it looks funny, it might be easier to build the journal entry. And it's better to look funny and get it right than build it in some way where you can't get the answer. So then we know that cash is going to be for whatever they gave us, which is the $230, credit $230. And there we have it. So then we got to take the bond off the books. So we're going to retire the bond and the related discount. So whatever the bond is and the related discount, they need to go away. So we know that the bond is on the books for $240, so that's a credit. So we're going to do the opposite thing to it, a debit. So I'm going to right click and copy it. And I'm going to put that on B21. And again, I'm kind of just making this work in terms of debits on top. If you're making this from scratch, just do it whatever way makes sense to build it top to bottom. Not worrying about debits or credits going on top. Right click and paste 123. It's on the books for $240. It's a liability with a credit balance. So we got to do the opposite, $240 debit. And then the related discount or premium, this happens to be a discount, needs to go away. The only problem there in practice is that you may not have a trial balance and may not know whether or not the discount or premium is a debit or credit account. And therefore, what do I do to it to make it go away? Do I debit or credit it? If you have a trial balance to give you an example that you can see, oh, it's a debit balance. If it's a discount, so I have to credit it. If you're looking at a multiple choice question, then you're just going to have to know. And a couple of things you might think about, you might say, well, I know bonds payable is a credit balance account. And a discount should make it go down because that means that we issued it for something less. So the discount must be opposite to the normal balance because these are too related and it's got to bring it down. So it's got to be a debit. On the other hand, if it were a premium, the payable is a liability representing kind of a sticker price. And if we sold it for more than the sticker price, the premium must make it go up. So it must be the same thing as a liability. It must be another credit if it were a premium. Here we have a discount. It's a debit balance. We need to make it go down. So we're going to do the opposite, which is a credit. So I'm going to copy the discount. Gonna put that here in B22, right click and paste 123. And then the amount's going to be a credit, 38, 748. And now of course the debits don't equal. The credit sees add up to 268, 748. This adds up to 240. There's going to be a difference if we highlight all of it up 28, 748. That's going to be the plug. I'll do that with our plug formula, negative sum. And then you could sum up from the bottom like this or you can move this out of the way and sum from top to bottom. And there's our 28, 748. If I highlight the whole thing, we're back in balance. And so now we're going to unpost this for now. Now we just need to know what that is. And that of course is going to be a gain or loss on the retirement. So when we retire it, we're going to have a gain or loss. What's the gain or loss going to be? Well, it's going to be the carrying value, the 240 minus the discount or plus the premium, 201 to 52 minus whatever we have to pay for it. So in this case, 230,000. And of course, if we're paying in this case, we're paying more than the carrying amount, this is going to be a loss. And you can also think about it's going to be a loss because it's a debit and it's going to be on the income statement. Debits are what expenses do. So that means it's a loss. If it were a credit, that means that we would have been paying less than the carrying amount and have it credit, which would be a gain on the income statement, which is kind of like what income does on the income statement. So I'm going to copy this gain or loss. I'm going to copy that, put that over here, right click and paste one, two, three. And then we have it. Now let's post this out. Here's the gain or loss. Here it is on our worksheet. We're going to be the middle column, age 30 equals this 28, 748. That's going to bring this up, put us out of balance and bring net income down. So that's all, you know it's a loss when we record it because net income goes down. And then here's the bonds payable. Here it is on our worksheet. We're in the middle column, age 23 equals the 240, bringing the bonds payable to zero. Here's the discount. Here it is on our worksheet. We're in the middle column, age 24 equals the 38, 748, bringing it to zero. And then we've got the cash going to age 20 equals the 230, bringing the cash to zero and putting us back in balance.


Look, it's a naive T cell this time. Oh, geez. Okay, it looks like it's going to work. So we're starting in the same spot. And this is a T cell that is going to give rise to the helper T cell that came over and activated our B cells, okay? So it's not activated yet. The naive T cells don't bind their antigen yet. They have to be shown an antigen from a presenter who has the antigen and is presenting on MHC2. So we're not going to be able to get activated. And this naive T cell doesn't even know that there's anything going on until an antigen presenter comes in. I don't know what colors I used in the last one, but I'm going to make this cell be my antigen presenter. And it's specifically dendritic cells that do this job. Now, I told you dendritic cells were carrying out this task. What must they have if they want to carry out this task? They have to have an MHC2 platform.  They have the antigen in question.  They go and patrol like various places. They actually like take samples of random stuff and try to find antigens that they can then present. We learned that they also were non-specific phagocytes. So they're going to go through, they have the pattern recognition receptors. They have PRRs that recognize PAMPs. And in the act, here's a beautiful link between these two. In the act of seeing the PAMP on the invader, they also find specific antigens associated with just that invader and they take those antigens and they post them on the MHC. Then they head off to the lymph nodes, to the coffee shops, to the donut stores, where they present the antigens to a whole bunch of naive T cells that are just chilling in those zones. They say, hey, has anybody in here recognized this? If the T cell recognizes the antigen, present T cell plus antigen, nothing. T cell plus antigen on MHC2. Remember how I told you that the T cell in order to have positive selection, our T cell had to be able to bind to MHC molecules. Here's one of the reasons why. This process, if they bind, that is going to lead to activation. Once we have an activated T cell activated, that says activated, T, T cells, just like B cells, are going to differentiate. One of the things, and you already know this, one of the things that we can differentiate into is what? Helper T's and helper T's have the ability to bind to MHC2 on B lymphocytes and activate them. So helper T's are going to activate B's. Thank you very much. Activated T's can also become memories. They can become memory T's. That says memory. And memory T's are just going to serve the same function as memory, I mean memory B's. I knew exactly what I was trying to say. And activated T's, so far we've got a helper T. That's a valuable thing to activate the moral immune response. Memory T's, we're going to keep track of everything, but we don't really have anybody who's doing anything until we activate our killer T's, our killer or cytotoxic T cells. Now, don't you want to know what these guys do? Well, let me tell you, let me give it to you straight. They go out and they find, this is how these guys function. They go out and find Joe the cell. Poor Joe, I'm not feeling good about this. Joe is like, dude, you guys got to see this thing that I found in my cell. It's like this weird green thing. And I ate it. And now I want to take a picture of it and show it to y'all, because I'm not sure why I ate that thing. Killer T comes along, sees its antigen on an MHC1 platform. Killer T binds to the antigen and the MHC1 platform. I mean, it's like you have to have two layers of permissions before you can carry out a killer T task, and guess what it does? It initiates apoptosis, apoptosis. Sad story. I'm sorry, Joe. That thing that you ate, that ain't good, man. That ain't good. And we got to protect everybody else in this mug so you are going down. And Joe will commit apoptosis just like previous apoptotic processes that we talked about with granzymes and perforin. And Joe will be done. Nicely protected. There was a word that I forgot to tell you guys last time. Blurb, blob, blurf. Some, I mean, it's like, it's a fantastic word. Like we got to, I got to go look it up because how can I forget this word? The word that, bleb, it's a bleb. What? That's a real word. That's not a windy word. Doesn't that sound like a windy word? Blebbing. So if you go through apoptosis, at least that's cool. At least you get to bleb in your final hours.   You know that blebbing is going to be my new word. Who thought of that word? I got to learn more about the blebbing phenomenon. Okay. I do agree that these two processes are absolutely connected to each other. Like we can't really separate them out. Especially thanks to this little guy down here, the helper T cell, that one literally connects the two. One thing that I want to make sure is clear in this is that both of these processes are responding to the same antigen. So simultaneously as soon as people start being exposed, as soon as people start finding the antigen and sharing the wealth, have you guys seen this thing? What do you think of this thing? Is this thing a bad idea? As soon as that all starts happening, we're going to initiate the response both sides of the response simultaneously. All right, let's look at the whole picture. Let's see, let's look at similarities and differences in the whole thing. So here's what you're going to do. And I'm going to do it too.  I'm going to combine these two visuals. I'm going to combine this one, the cell mediated response, with this one, the humoral immune response.  So you can really see them compared to each other. And then we're almost done.


Hello and welcome to the session. I am Deepika here. Let's discuss the question which says in the given figure Einstein made of wood is in the shape of a cuboid with four conical depressions to hold pins. The dimensions of the cuboid are 15 centimeter by 10 centimeter by 3.5 centimeter. The radius of each of the depression is 0.5 centimeter and the depth is 1.4 centimeter. Find the volume of the wood in the entire stretch. Now we know that volume of cuboid is equal to length into breadth into height and volume of cone is equal to 1 by 3 pi r square h where is the radius? H is the height. So this is a key idea behind our question. We will take the help of this key idea to solve the above question. So let's start the solution. Now we are given length of the cuboid is equal to 10 centimeter. Weft of the cuboid is 10 centimeter and height of the cuboid is equal to 3.5 centimeter. Now a pen stand made of wood is in the shape of a cuboid with four conical depressions. Now the radius of the conical depression is equal to 0.5 centimeter. Now this is a conical depression and this radius is 0.5 centimeter and the depth of the conical depression equal to 1.4 centimeter that is the height of the cone is equal to 1.4 centimeter. Volume of wood is equal to volume of wood used in cuboid. This volume of four depressions is a conical. According to our key idea volume of cuboid is equal to length into breadth into height minus volume of cone is 1 by 3 pi r square h and this is equal to now length is 15 centimeter into breadth is 10 centimeter and height is 3.5 centimeter minus 4 into 1 by 3 into take pi is 22 upon 7 now radius is 0.5 centimeter and height is 1.4 centimeter. And this is again equal to 25 minus 4 into 1 by 3 into 22 upon 7 into 5 upon 10 into 5 upon 10 into 14 upon 10 centimeter cube and this is equal to 525 minus non-cancellation we have 1 into 2 upon 3 into 5 centimeter cube and this is again equal to 525 minus 22 upon 15 centimeter cube. This is equal to 525 minus now 22 upon 15 is 1.47. Hence the volume of wood used equal to 525 minus 1.47 and this is equal to 523.53 centimeter cube. Hence the answer for the above question is 523 0.53 centimeter cube. I hope the solution is clear to you. Bye and take care