Question
OnJanuary1,2016,theRanglerCompanyissued$700,000ofeight-yearbondsat102.Thestatedannualinterest rateis8%,andinterestispaidonJune30andDecember31.Thebondsarecallableat104 plusaccruedinterest. Thebondissuecostswere$7,200.TheRanglerCompanyusesthestraight-linemethodtoamortizebonddiscounts andpremiums. Required: a. Preparethejournalentry(ies)torecordtheissuanceofthebondsandthebondissuecosts. b. Attheendofthesixthyear,thecompanyexercisedthecalloptionandretiredthebonds. Preparethejournalentriestorecordtherelatedinterestandretirement. **PLEASE SHOW ALL WORK & CALCULATIONS**
OnJanuary1,2016,theRanglerCompanyissued$700,000ofeight-yearbondsat102.Thestatedannualinterest rateis8%,andinterestispaidonJune30andDecember31.Thebondsarecallableat104 plusaccruedinterest. Thebondissuecostswere$7,200.TheRanglerCompanyusesthestraight-linemethodtoamortizebonddiscounts andpremiums.
Required:
a. Preparethejournalentry(ies)torecordtheissuanceofthebondsandthebondissuecosts.
b. Attheendofthesixthyear,thecompanyexercisedthecalloptionandretiredthebonds. Preparethejournalentriestorecordtherelatedinterestandretirement.
**PLEASE SHOW ALL WORK & CALCULATIONS**
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