Question
On January 1, 2021, Shay Company issues $350,000 of 10%, 15-year bonds. The bonds sell for $342,125. Six years later, on January 1, 2027, Shay
On January 1, 2021, Shay Company issues $350,000 of 10%, 15-year bonds. The bonds sell for $342,125. Six years later, on January 1, 2027, Shay retires these bonds by buying them on the open market for $365,750. All interest is accounted for and paid through December 31, 2026, the day before the purchase. The straight-line method is used to amortize any bond discount.
Prepare the journal entry to record the bond retirement?
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
