Question
on 5/1/21 a company sold 15,000 $1,000 face value, 11% bonds that are due 4/1/26. proceeds from the bonds were 13,492,014 plus accrued interest and
on 5/1/21 a company sold 15,000 $1,000 face value, 11% bonds that are due 4/1/26. proceeds from the bonds were 13,492,014 plus accrued interest and they have coupon dates of 4/1 and 10/1.
On 3/1/22 the company extinguished 6,000 of the bonds by paying 5,411,000 of cash plus accrued interest.
prepare all journal entries for the bonds from the initial sale (6/1/21) through the close of the 2000 fiscal year (12/31/22). What are the 12/31/22 balances for the related bond, discount, and interest payable as of 12/31/22? what amounts related to the bonds will appear in the income statement for 2022 and how will they be reported/classified?
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