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Buffett Co. issued $250,000 of 10% bonds on January 1, 2010, due on January 1, 2020, with interest payable each July 1 and January 1.
Buffett Co. issued $250,000 of 10% bonds on January 1, 2010, due on January 1, 2020, with interest payable each July 1 and January 1. Buffett incurs $40,000 of indirect issue costs for the bond indenture 1. If investors desire to earn an effective interest rate of 12%, how much should they pay for the bonds? 2. Amortization table for 2010-2011? 3. On January 1, 2012 the bonds are retired at 103. What is the gain or loss to be recorded? 4. Journal entry for retirement
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