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Lemon Co. sells $1,000,000 of 10% bonds on August 1, 2017. The bonds pay interest on February 1 and August 1. The due date of
Lemon Co. sells $1,000,000 of 10% bonds on August 1, 2017. The bonds pay interest on February 1 and August 1. The due date of the bonds is August 1, 2020. The bonds yield 12%. On October 1, 2018, Lemon Co. buys back $200,000 worth of bonds for $218,000 (includes accrued interest). Give entries through October 1, 2018
What is the present value of the bond at the date of issuance? | |||||
What is the amount of interest expense as of 12/31/17? | |||||
What is the amount of interest expense as of 2/1/18? | |||||
What is the amount of interest expense as of 8/1/18? | |||||
What is the amount of interest expense as of 10/1/18 for | |||||
the bonds reacquired? | |||||
What is the loss on the bonds reacquired at 10/1/18? |
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