Dear Chegg members,

Provide the solution for following question:

1. On Jan 1, 2017, (ABC) Co. issued $600,000, 6% 4-Years bonds, Interest is payable semiannually on June 30 and Dec. 31. The market interest rate 8%.
2. On Jan 1, 2018 the bonds are recalled at 95. Expenses of recall are $15,000

Instructions

1. Compute the issue price of bonds?
2. Prepare the journal entry at Jan 1, 2015 and June 30 and Dec. 31, 2015?
3. Prepare the journal entry to record the recall of bonds at Jan 1, 2018?
4. Assume the bonds are recalled at 110; prepare the journal entry to record the recall of bonds at Jan 1, 2018?