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Please show the detailed calculations. P15-8A Kershaw Electric sold $6 million of 10%, 10-year bonds on January 1, 2017. The bonds were dated January 1,
Please show the detailed calculations.
P15-8A Kershaw Electric sold $6 million of 10%, 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 98. Instructions (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (b) Assume that at December 31, 2017, $8,000 of the discount has been amortized. Show the balance sheet pre- sentation of the non-current liability at December 31, 2017. (c) Assume that on January 1, 2019, when the bonds' amortized cost was $5,896,000, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period had already been paid
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