Question
Please help and show work if possible :) Kershaw Electric sold $5,430,000, 12%, 10-year bonds on January 1, 2017. The bonds were dated January 1,
Please help and show work if possible :)
Kershaw Electric sold $5,430,000, 12%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and paid interest on January 1. The bonds were sold at 96.
Prepare the journal entry to record the issuance of the bonds on January 1, 2017.
(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2017.
(b) At December 31, 2017, $8,000 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2017.
(c) At January 1, 2017, when the carrying value of the bonds was $5,896,000, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the year had already been paid.
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