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PLEASE SHOW WORK Question 10 4/4 pts On 12-31-19, O issued $2,000,000 of its 3%, 2-year callable term bonds dated 12-31-19. The bonds pay interest
PLEASE SHOW WORK
Question 10 4/4 pts On 12-31-19, O issued $2,000,000 of its 3%, 2-year callable term bonds dated 12-31-19. The bonds pay interest every June 30 and December 31. O can call in the bonds any time after 12-31-20 at 102 plus interest. At the time O issued the bonds, similar bonds paid 3%. Upon issuing the bonds, O incurred and paid $24,000 of bond issuance costs. O uses the effective-interest method to amortize any bond discount or premium. O prepares AJEs only as of every December 31. On 01-01-21, called in all of the bonds at the call price of 102. The entry to record O's 12-31-20 interest expense will include a $30,000 debit to cash. a $35,945 debit to interest expense. a $30,000 credit to interest payable. a $35,945 credit to interest expense
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