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On March 1, 2019, mk company, issued $800,000, 10%, 10-year bonds dated March 1, 2019, with interest payable semi-annually on March 1 and September 1.
On March 1, 2019, mk company, issued $800,000, 10%, 10-year bonds dated March 1, 2019, with interest payable semi-annually on March 1 and September 1. The market yield at issuance is 8%. On May 1, 2020, Orr retired $200,000 of these bonds at 101 plus accrued interest. Orr's fiscal year end is December 31. Required:
(a) Prepare a.l the necessary journal entries relating to the bonds for 2019, including any year end adjusting entries.
(b) Prepare the necessary journal entries relating to the bonds on March 1 and May1
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