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Marty Company issued $200,000,5%, 5 year bonds on 1/1/14 when the market rate of interest was 7% for $183,600. Interest is paid annually on December
Marty Company issued $200,000,5%, 5 year bonds on 1/1/14 when the market rate of interest was 7% for $183,600. Interest is paid annually on December 31 of each year. The bonds were retired at 104 on 1/1/16. Round all amounts to the nearest dollar. Required: a. Prepare the journal entry on 1/1/14 for the issuance of the bonds. b. Prepare the journal entry for the interest expense, amortization and interest payment for the second interest payment on 12/31/15. Prepare the journal entry to record the retirement on 1/1/16. c. Account Debit Credit Date 1/1/14 Account Debit Credit Date 12/31/15 Account Debit Credit Date 1/1/16 Show supporting calculations here
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