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Mystle company issued $500000 of 8% 10-year bonds on December 31, 2017 for 470,000. Interest is payable annually on December 31. On January 1, 2009,
Mystle company issued $500000 of 8% 10-year bonds on December 31, 2017 for 470,000. Interest is payable annually on December 31. On January 1, 2009, Mystle called the bond at 100. Mystle used the straight line method of amortization and had a calendar year end.
Prepare the appropriate journal entries.
1) December 31, 2017 for the bond issue.
1) December 31, 2018, for the first payment
3) January 1, 2019 call
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