Question
Bond Retirement Problem #2 On January 1, 2015, Epson Co. issued 10-year bonds with a face value of $5,000,000 and a stated interest rate of
Bond Retirement Problem #2
On January 1, 2015, Epson Co. issued 10-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%.
- Calculate the issue price of the bond in dollars
- Calculate the issue price of the bonds as a percentage
- Make the journal entry to record the issuance of the bond on January 1, 2015
- Prepare the amortization table for the years 2015, 2016 & 2017
- Make the journal entries for 2017
- How much was the interest expense for 2017?
- On December 31, 2017 $400,000 of the bonds were retired at 95. Make the journal entry to record the retirement.
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Secretarial Audit Compliance Management And Due Diligence CS Professional New Course
Authors: AJ
16th Edition
9390303842, 978-9390303847
