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No. Account Titles and Explanation Debit Credit (a) Cash (To record the redemption of the old issue) O June 30, 2009, pina Company issued 12%
No. Account Titles and Explanation Debit Credit (a) Cash (To record the redemption of the old issue) O June 30, 2009, pina Company issued 12% bonds with a par value of 840,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on )une 30 2018, and to issue new bonds. New 8% bonds were so d in the amaunt a $1,070,000 at 102they mature in 20 years pina Company uses straight-line amortization Interest payment dates are December 31 and June 30 (a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018. (b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months interest and the amortization of premium on the bonds. Round answers to 0 decimal places e g. 38 548. Il no entry is required select No Entry for the account titles ad enter 0 Or the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manu all . No. Account Titles and Explanation Debit Credit To record the redemption of the old issue)
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