On January 1, 2019, the T-Square Company sold a $200,000 bond at 98 with an 8% stated interest rate. The bond pays interest on June 30 and December 31. The market rate of interest at the time of the issue was 10%. The bonds mature on December 31, 2028.

Required:

a. Prepare the journal entry to issue the bond

b. Prepare the journal entries for making the interest payments on June 30 and December 31, 2019.

c. On January 1, 2020, the bonds were recalled. The market interest rates dropped dramatically due to the COVID 19 virus spread. Record the journal entry to buy back the bonds at 104.

8. (18 points) On January 1, 2019, the T-Square Company sold a $200,000 bond at 98 with an 8% stated interest rate. The bond pays interest on June 30 and December 31. The market rate of interest at the time of the issue was 10%. The bonds mature on December 31, 2028 Required: Prepare the journal entry to issue the bond. b. Prepare the journal entries for making the interest payments on June 30 and December 31, 2019. On January 1, 2020, the bonds were recalled. The market interest rates dropped dramatically due to the COVID 19 virus spread. Record the journal entry to buy back the bonds at 104