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On June 30, 2012. Culver Company issued 12% bonds with a par value of $840.000 due in 20 years. They were issued at 98 and
On June 30, 2012. Culver Company issued 12% bonds with a par value of $840.000 due in 20 years. They were issued at 98 and were callable at 103 at any date after June 30, 2020. Because of lower Interest rates and a significant change in the company's credit rating it was decided to call the entire issue on June 30, 2021. and to issue new bonds. New 8% bonds were sold in the amount of $1060.000 at 103; they mature in 20 years. Culver Company uses straight-line amortization Interest payment dates are December 31 nd h Prepare Journal entri frrd the redemptiont th t nd th l f th rw me on Ameo 202 Prepare the entry repared on December 21, 22, torecore the pryment of the frmnth interest and the amouzation of premium on the b Round answers to Odecimal places, ex, t na entry were select "Na Entry for the account titles and enter 0 fr th munt, Credit account ls r utomatically indened when amount is entered Do not talent manually Account Titles and Explanation Debit Credit
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