There are three independent situations summarized below. In all three cases the bonds are sold on January 1,2011 and the issuing company has a December 31 year-end. In situation three,the bonds were all repurchased at par on January 1,2015.
Requirement:
Prepare journal entries to record:
a. The issuance of the three bonds.
b. Payment of interest and related amortization on December 31,2011. Prepare the amortization table to help you.
c. Retirement of the situation 3 bond on January 1,2015.

Question

There are three independent situations summarized below. In all three cases the bonds are sold on January 1,2011 and the issuing company has a December 31 year-end. In situation three,the bonds were all repurchased at par on January 1,2015.
  Requirement:
Prepare journal entries to record:
a. The issuance of the three bonds.
b. Payment of interest and related amortization on December 31,2011. Prepare the amortization table to help you.
c. Retirement of the situation 3 bond on January 1,2015.

Quizplus · Accepted Answer

The Answer of There are three independent situations summarized below. In all three cases the bonds are sold on January 1,2011 and the issuing company has a December 31 year-end. In situation three,the bonds were all repurchased at par on January 1,2015.
  Requirement:
Prepare journal entries to record:
a. The issuance of the three bonds.
b. Payment of interest and related amortization on December 31,2011. Prepare the amortization table to help you.
c. Retirement of the situation 3 bond on January 1,2015.

There Are Three Independent Situations Summarized Below