On March 1 of Year 1, Sandollar Inc. issued $18,000 of bonds at 105, paying 8% cash
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Question:
On March 1 of Year 1, Sandollar Inc. issued $18,000 of bonds at 105, paying 8% cash interest semiannually on June 30 and December 31. The bonds are dated January 1 of Year 1 and are scheduled to mature at December 31 of Year 4. On September 1 of Year 1, $6,000 of the bonds were retired when the bonds were selling at 89. Assume the straight-line interest method is used to amortize bond discounts and premiums. Note: When answering the following questions, round your answers to the nearest whole dollar.
a. Provide the entry for the bond issuance on March 1 of Year 1.
b. Provide the entry for the interest payment on June 30 of Year 1.
c. Provide the entry to recognize interest expense for the portion of the bond issue retired on September 1 of Year 1.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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