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Analyzing Bonds Payable and Debt Retirement The long-term liability disclosure note to the Year 2 annual report of Penguin Pilots Inc. included the following. Additional
Analyzing Bonds Payable and Debt Retirement The long-term liability disclosure note to the Year 2 annual report of Penguin Pilots Inc. included the following. Additional assumptions: 1. Debentures were issued at par on January 1 in Year 2 and pay interest each December 31. 2. Debentures retired were scheduled to mature December 31 , Year 9 . 3. Assume instead that Alaska Air decides to retire the bonds at December 31 of Year 2 , paying the fair value of the bonds, which reflected a yield rate of 5%. Required a. Prepare the December 31 , Year 2 , interest payment entry. - Note: Round your answers to the nearest million dollars. b. Prepare the December 31 , Year 2 , bond retirement entry. - Note: Round your answers to the nearest million dollars
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