January 1, 2020, Braveheart Corp. issued bonds with a par value of $ 1,000,000 at 98 (which is net of issue costs), due in 15 years. Six years after the issue date, the entire issue is called at 102 and cancelled.
Instructions
Prepare the journal entry to reflect the reacquisition of the bond assuming the straight-line amortization method.

Question

Quizplus · Accepted Answer

The Answer of January 1, 2020, Braveheart Corp. issued bonds with a par value of $ 1,000,000 at 98 (which is net of issue costs), due in 15 years. Six years after the issue date, the entire issue is called at 102 and cancelled.
Instructions
Prepare the journal entry to reflect the reacquisition of the bond assuming the straight-line amortization method.