Q9:

On Dec. 31, 2020, Zallaq company issues callable bonds that have a $700,000 par value, mature in 10 years, and pay 5% interest semiannually on June 30 and December 31. The bonds are sold at $600,00o. On Dec. 31, 2021. the company called on the bonds and paid $589,000 to outstanding bondholders.

Required:

Prepare journal entries to record:

1. The bonds issuance on Dec. 31 2020.

2. The semi-annual interest payment.

3. The bonds retirement .

CLEARLY INDICATE THE DEBITS & CREDITS Example:

XYZ Company pays $10,000 cash to purchase land Answer:

Dr. Land 10.000

Cr . Cash 10.000

 

no Mark On Dec 31. 2000, Zalag company iun ratbir bondh that have a s700 000 par valan, matrein 10 years and pey erent semamualy on june s0 and Decnb 1. The bondeav sold at oa. on Dic 1, . the complany caed on the bonds ant paid ssa00o to Dutstanding bondholdern. Required Prepare joumal entries to record 1, The bonds uanor on Dec 31 2020 2 The semi annul terest payment 1 The bonds retirement. CLEARLY INDICATE TIHE DEBITS A CREDITS Exsple XYZ Coopany pay 310.000 h to purchae land Aome De Land Cr C For the tooltar, press ALTF10 (PC) or ALTIENIFIO (Mac) 20,000 10,000 BIVS Paragraph Arial 14px x X, 1%