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Parkview Magazine issued $390,000 of 15-year, 8% callable bonds payable on July 31, 2024, at 95. On July 31, 2027, Parkview called the bonds at
Parkview Magazine issued $390,000 of 15-year, 8% callable bonds payable on July 31, 2024, at 95. On July 31, 2027, Parkview called the bonds at 103. Assume annual interest payments.
Requirements 1:
1. | Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2027. |
| (Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2027.) No explanation is required. |
The carrying amount of the bonds payable at issuance (July 31, 2024) is ________ |
| . The | (Discount or Premium) | on the bonds at | ||
issuance amounts to _________.
Requirement 2: Assume all amortization has been recorded properly . Journalize the retirement of the bonds on July 31, |
| . |
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