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FINANCIAL ACCOUNTING II The Koff - Dropze Pharmaceutical Corp. has a fiscal year that ends on December 3 1 st The company acquired a bond
FINANCIAL ACCOUNTING II
The KoffDropze Pharmaceutical Corp. has a fiscal year that ends on
December st
The company acquired a bond indenture that authorized $ of
callable, mortgage bonds, effective April The bonds were secured
by property and equipment with a market value of $
The bonds paid interest at a stated rate of eight percent and had an
expected term of six years. Interest was due and payable to bondholders
each September and March
On July KoffDropze issued of the bonds and received
a cash payment in the total amount of $which included interest
accrued to date
pot interes
sue.
acqunde past pant.
On October KoffDropze called the bonds and paid the current
bondholders anyinterest accrued to date, plus an additional $ in
cash.
Provide only the following journal entries that the KoffDropze
Pharmaceutical Corp. made relating to the bonds:
The entries made during the period April through December
The entry that was recorded when the bonds were redeemed on
October
Remember that any balance remaining in an unamortized premium or
discount account must also have been closed when the bonds were
redeemed.
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