Cuffe Inc.issued $500,000,callable,10%,10-year bonds at 97 on January 2,2012.The bonds are callable at 102 any time after January 2,2012.On December 31,2017,Cuffe Inc.calls the entire issuance.
a_Compute the balance in the premium or discount account on December 31,2017.
$$\text { Cuffe Inc. uses the straight-line method of amortization. }$$ b_Prepare the entry to call the bonds on December 31,2017.

Question

Cuffe Inc.issued $500,000,callable,10%,10-year bonds at 97 on January 2,2012.The bonds are callable at 102 any time after January 2,2012.On December 31,2017,Cuffe Inc.calls the entire issuance.
a_Compute the balance in the premium or discount account on December 31,2017.
 $$\text { Cuffe Inc. uses the straight-line method of amortization. }$$ b_Prepare the entry to call the bonds on December 31,2017.

Quizplus · Accepted Answer

The Answer of Cuffe Inc.issued $500,000,callable,10%,10-year bonds at 97 on January 2,2012.The bonds are callable at 102 any time after January 2,2012.On December 31,2017,Cuffe Inc.calls the entire issuance.
a_Compute the balance in the premium or discount account on December 31,2017.
 $$\text { Cuffe Inc. uses the straight-line method of amortization. }$$ b_Prepare the entry to call the bonds on December 31,2017.

Cuffe IncIssued $500,000,callable,10%,10-Year Bonds at 97 on January 2,2012 Cuffe Inc. uses the straight-line method of amortization. \text { Cuffe Inc. uses the straight-line method of amortization. } Cuffe Inc. uses the straight-line method of amortization.

Cuffe IncIssued $500,000,callable,10%,10-Year Bonds at 97 on January 2,2012 $\text { Cuffe Inc. uses the straight-line method of amortization. }$