CHAPTER 14 (6.)

National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $750,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:

5. Prepare the appropriate journal entries at maturity on December 31, 2021.

• Record the retirement of the bond at maturity on December 31, 2021.