On January 1, 2021, Blue Hat Company issues a bond with a maturity on December 31, 2021. The market rate is 7%. Coupon rate is 6%. Interest is paid each June 30 and December 31. Assume at Dec 31, year end. Blue Hat Company's accounting staff properly prepared a bond amortization schedule below.

-Assume that at Dec 31,2020,the bonds are retired for cash $1,500,000 by the issuer,after interest is paid.Prepare the journal entry and make sure to record either a gain or loss on bond redemption.

Question

On January 1, 2021, Blue Hat Company issues a bond with a maturity on December 31, 2021. The market rate is 7%. Coupon rate is 6%. Interest is paid each June 30 and December 31. Assume at Dec 31, year end. Blue Hat Company's accounting staff properly prepared a bond amortization schedule below.

-Assume that at Dec 31,2020,the bonds are retired for cash $1,500,000 by the issuer,after interest is paid.Prepare the journal entry and make sure to record either a gain or loss on bond redemption.

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The Answer of On January 1, 2021, Blue Hat Company issues a bond with a maturity on December 31, 2021. The market rate is 7%. Coupon rate is 6%. Interest is paid each June 30 and December 31. Assume at Dec 31, year end. Blue Hat Company's accounting staff properly prepared a bond amortization schedule below.

-Assume that at Dec 31,2020,the bonds are retired for cash $1,500,000 by the issuer,after interest is paid.Prepare the journal entry and make sure to record either a gain or loss on bond redemption.

On January 1, 2021, Blue Hat Company Issues a Bond