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Hillis Corporation issued $600,000 of 13% bonds on January 1, 2019, for $614,752.24. The bonds are due December 31, 2021, were issued to yield 12%,
Hillis Corporation issued $600,000 of 13% bonds on January 1, 2019, for $614,752.24. The bonds are due December 31, 2021, were issued to yield 12%, and pay interest semiannually on June 30 and December 31. Hillis uses the effective interest method.
1. prepare a bond interest expense and premium amortization schedule.
2. Assume the company retired the bonds on september 30, 2021, for $630,000 which includes accured interest. Prepare the journal entry to record the bond retirement.
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