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Four years ago American Insulation Corporation issued 10 percent, $840,000, 10-year bonds for $790,000. Debt issue costs were $8,000. American Insulation exercised its call privilege
Four years ago American Insulation Corporation issued 10 percent, $840,000, 10-year bonds for $790,000. Debt issue costs were $8,000. American Insulation exercised its call privilege and retired the bonds for $830,000. The corporation uses the straight-line method both to determine interest and to amortize debt issue costs. Record the call of the bonds. |
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