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on april 1,2017 Taylor corp. sold 12,000 of its $1,000 face value, 15 year, 11% bonds af 97. Interest payment dates are April 1 and
on april 1,2017 Taylor corp. sold 12,000 of its $1,000 face value, 15 year, 11% bonds af 97. Interest payment dates are April 1 and october 1 and the company uses straight line method of bond discount amortization. On march 1,2018 taylor extinguished 3,000 of the bonds by issuing 100000 shares. At this time accured interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1,2018 , 12,0000 of companys share sold for $31 per share. Prepare taylors journal entries to record the following. a) April 1, 2017; insurance of bonds b) October 1, 2017; payment of semi annual interest. c) December 31, /017; accural of interest expense d) March 1,2018 extinguishment of 3000 bonds by the issuance of common shares ( no reversing entries are made)
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