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Killebrew Corporation issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate:
Killebrew Corporation issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate: February 1, 2017 $2,000,000 98 % $1,000 11 years 4 % %, payable semiannually on July 31 and January 31 Prepare journal entries for: a. Issuance of the bonds. b. Interest payment and premium amortization on the bonds on August 1, 2017 c. Year-end adjustment on the bonds for 2017. d. Reversing entry for the beginning of 2018 e. Redemption of $200,000 of the bonds on August 1, 2021 at 100%
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