On January 1, 2014, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated annual interest rate is 8%, and interest is paid on June 30 and December 31. The bonds are callable at 105 plus accrued interest. The bond issue costs were $7,200. The Rangler Company uses the straight-line method to amortize bond discounts and premiums.
Required:
a.Prepare the journal entry(ies) to record the issuance of the bonds and the bond issue costs.
b.At the end of the sixth year, the company retired the bonds. Prepare the journal entries to record the related interest and retirement.

Question

On January 1, 2014, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated annual interest rate is 8%, and interest is paid on June 30 and December 31. The bonds are callable at 105 plus accrued interest. The bond issue costs were $7,200. The Rangler Company uses the straight-line method to amortize bond discounts and premiums.
Required: 
a.Prepare the journal entry(ies) to record the issuance of the bonds and the bond issue costs.
b.At the end of the sixth year, the company retired the bonds. Prepare the journal entries to record the related interest and retirement.

Quizplus · Accepted Answer

The Answer of On January 1, 2014, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated annual interest rate is 8%, and interest is paid on June 30 and December 31. The bonds are callable at 105 plus accrued interest. The bond issue costs were $7,200. The Rangler Company uses the straight-line method to amortize bond discounts and premiums.
Required: 
a.Prepare the journal entry(ies) to record the issuance of the bonds and the bond issue costs.
b.At the end of the sixth year, the company retired the bonds. Prepare the journal entries to record the related interest and retirement.

On January 1, 2014, the Rangler Company Issued $600,000 of Eight-Year