Question
Acme, Inc. issued $100,000 of its 7% five-year bonds on January 1, 2011, at 101. Interest is paid on January 1 and July 1. The
Acme, Inc. issued $100,000 of its 7% five-year bonds on January 1, 2011, at 101. Interest is paid on January 1 and July 1. The bonds are callable at 105 plus accrued
interest and straight-line amortization is used. The bonds are recalled on April 1, 2013.
Prepare the journal entry to accrue the necessary amount of interest for the April 1, 2013 retirement:
Prepare the journal entry to record the April 1, 2013 retirement:
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Financial Accounting
Authors: Walter B. Meigs, A. N. Mosich, Robert F. Meigs
2nd Edition
0070412901, 978-0070412903
