Question
Instructions : Can you please solve this problem step by step, so that i dont get confused. Please show calculation. Thank you alot. Shonrock Co.
Instructions : Can you please solve this problem step by step, so that i dont get confused. Please show calculation. Thank you alot.
Shonrock Co. Sold 800,000 9% , 10 year bonds on january 1, 2015. The Bonds were dated january 1 2015, and paid interest on january 1. The Bonds were sold at 105.
a. Prepare the journal entry to record the issuance of bonds on january 1, 2015.
b. At december 31, 2015, $4,000 of the premium on bonds payable account has been amortized. Show the balance sheet presentations of the long term liability at december 31,2015.
c. on january 1, 2017, when the carrying value of the bonds was 832,000, the company redeemed the bonds at 106. Record the redemptions of the bonds assuming that interest for the period has already been paid.
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