Entries for bonds payable
Prepare journal entries to record the following transactions related to Chico Ltd.'s long-term bonds:
a) On April 1, 2020, Chico issued $ 600,000, 9% bonds (dated January 1, 2020) for $ 645,442 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2030.
b) On July 1, 2022, Chico retired 30% of the bonds at 102 plus accrued interest. Chico uses straight-line amortization.
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