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on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %, Twenty-year bonds at 102. the bonds are callable at 105. Interest on the bond
on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %, Twenty-year bonds at 102. the bonds are callable at 105. Interest on the bond is payable annualy. Baseline uses the Stright-line method to amortize bond premium or discount. On january1, 2018, Baseline Called 5,000,000 of the issue and retired the bond.
Required
a) prepare the journal entry to record the issuance of the bonds on January 1, 2014
b) prepare the journal entry to record the retirement of the bonds on january 1, 2018.
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