Caron Industries received authorization on December 31, 2014, to issue $7,000,000 face value of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, 2015. The bonds are callable by Caron at any time at 102.
REQUIRED:
Caron exercises the call provision and retires one-half of the bond issue on July, 1, 2017. Identify the accounting equation effects to record this transaction on July 1, 2017.

Question

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The Answer of Caron Industries received authorization on December 31, 2014, to issue $7,000,000 face value of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, 2015. The bonds are callable by Caron at any time at 102.
REQUIRED:
Caron exercises the call provision and retires one-half of the bond issue on July, 1, 2017. Identify the accounting equation effects to record this transaction on July 1, 2017.

Caron Industries Received Authorization on December 31, 2014, to Issue