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National Co. issued 9% bonds, dated December 1, 2020, with a face amount of $500,000 on December 1, 2020. The bonds mature on November 30,
National Co. issued 9% bonds, dated December 1, 2020, with a face amount of $500,000 on December 1, 2020. The bonds mature on November 30, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 1 and December 1.
1. Prepare the journal entry on June 1, 2021.
2. Assume all the bonds are retired at 103 2/8 on June 1, 2022 (after third payment). Prepare the journal entry for the retirement.
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