There are three independent situations summarized below.In all three cases the bonds are sold on January 1,2016 and the issuing company has a December 31 year-end.In situation three,the bonds were all repurchased at par on January 1,2020.

Required:
Prepare journal entries to record:
a.The issuance of the three bonds.
b.Payment of interest and related amortization on December 31,2016.Prepare the amortization table to help you.
c.Retirement of the situation 3 bond on January 1,2020.

Question

There are three independent situations summarized below.In all three cases the bonds are sold on January 1,2016 and the issuing company has a December 31 year-end.In situation three,the bonds were all repurchased at par on January 1,2020.
  
Required:
Prepare journal entries to record:
a.The issuance of the three bonds.
b.Payment of interest and related amortization on December 31,2016.Prepare the amortization table to help you.
c.Retirement of the situation 3 bond on January 1,2020.

Quizplus · Accepted Answer

The Answer of There are three independent situations summarized below.In all three cases the bonds are sold on January 1,2016 and the issuing company has a December 31 year-end.In situation three,the bonds were all repurchased at par on January 1,2020.
  
Required:
Prepare journal entries to record:
a.The issuance of the three bonds.
b.Payment of interest and related amortization on December 31,2016.Prepare the amortization table to help you.
c.Retirement of the situation 3 bond on January 1,2020.

There Are Three Independent Situations Summarized Below