Palatino Ranchers acquired a $300,000 15-year,10% callable bond on January 1,20X9,for cash of $258,702.The bond was acquired at a price to yield 12%.The bond pays interest every June 30 and December 31.On December 31,20X9,after interest had been received,the bond owned by Palatino Ranchers was called at a price of 101 (101% of face value).Assume the company intends to hold the bond until maturity and the company uses the effective interest method of discount or premium amortization.
Prepare the appropriate journal entry for each of the following events:
a.The purchase of the bond on January 1,20X9
b.The receipt of the June 30,20X9,interest payment
c.The receipt of the December 31,20X9,interest payment
d.The bond being called on December 31,20X9

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The Answer of Palatino Ranchers acquired a $300,000 15-year,10% callable bond on January 1,20X9,for cash of $258,702.The bond was acquired at a price to yield 12%.The bond pays interest every June 30 and December 31.On December 31,20X9,after interest had been received,the bond owned by Palatino Ranchers was called at a price of 101 (101% of face value).Assume the company intends to hold the bond until maturity and the company uses the effective interest method of discount or premium amortization.
Prepare the appropriate journal entry for each of the following events:
a.The purchase of the bond on January 1,20X9
b.The receipt of the June 30,20X9,interest payment
c.The receipt of the December 31,20X9,interest payment
d.The bond being called on December 31,20X9

Palatino Ranchers Acquired a $300,000 15-Year,10% Callable Bond on January