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Alan Company had bonds outstanding with a maturity value of $1,500,000. On June 30, 2020, when these bonds had an unamortized premium of $21,000, they
Alan Company had bonds outstanding with a maturity value of $1,500,000. On June 30, 2020, when these bonds had an unamortized premium of $21,000, they were called in at 103. To pay for these bonds, Alan had issued other bonds a few days earlier bearing a lower interest rate. The newly issued bonds had a life of 20 years. The new bonds were issued at 98 (face value $1,800,000).
Record the bond refunding and retirement transactions.
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