Question
ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to be made on June 30 and December 31 at
ABC Company issued $200,000 face value bonds on January 1, 2017, with semiannual interest payments to be made on June 30 and December 31 at a contract rate of 10%. The bonds were scheduled to mature five years after they were issued. On January 1, 2020, three years after the bonds were issued, the company repurchased 40% of the outstanding bonds for $79,000.Assume that the bonds were issued when the market rate of interest was 9%
Using straight line, show the calculation of the periodic amortization within the appropriate journal entries explanations.
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