TreeTop Corporation had issued $5,000,000 of 10-year bonds with a 12% stated rate and interest to be paid annually. They were issued on January 1, 2008 at 96 and have been amortized using the straight-line method through December 31, 2014. On June 30, 2015, TreeTop retired all the bonds by exercising the call feature. The call price was 101.
Required:
Prepare the journal entry for the call of the bonds on June 30, 2015. (Remember to amortize the discount and update the book value of the bonds for the half-year prior to retirement).

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The Answer of TreeTop Corporation had issued $5,000,000 of 10-year bonds with a 12% stated rate and interest to be paid annually. They were issued on January 1, 2008 at 96 and have been amortized using the straight-line method through December 31, 2014. On June 30, 2015, TreeTop retired all the bonds by exercising the call feature. The call price was 101.
Required:
Prepare the journal entry for the call of the bonds on June 30, 2015. (Remember to amortize the discount and update the book value of the bonds for the half-year prior to retirement).

TreeTop Corporation Had Issued $5,000,000 of 10-Year Bonds with a 12