On January 1, 2008, Davis Corporation issued $3,900,000 of 7% bonds at 101. Interest is paid annually on December 31 of each year. The bonds mature on December 31, 2027, and the company uses the straight-line method of amortization. On January 2, 2016, Davis reacquired the bonds and recognized a loss of $88,000.

Required:

Next Level Calculate the reacquisition price of the bonds on January 2, 2016, and prepare the journal entry to record the reacquisition of Daviss bonds.

Prepare the journal entry to record the reacquisition of Davis's bonds on January 2, 2016. How does grading work? PAGE 1 GENERAL JOURNAL Score: 44/49 DATE POST. REF. CREDIT Jan. 2, 2016 ACCOUNT TITLE Bonds Payable Loss on Bond Reacquisition Premium on Bonds Payable DEBIT 3,900,000.00 88,000.00 100.00 Cash 100.00 Points: 8.08/9 Calculate the reacquisition price of the bonds on January 2, 2016