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QUESTION 2 ABC Company issued bonds on December 31, 2014. The bonds pay interest twice yearly on June 30 and December 31. Bond amount: Bond
QUESTION 2 ABC Company issued bonds on December 31, 2014. The bonds pay interest twice yearly on June 30 and December 31. Bond amount: Bond term in years: Bond face rate %: Market rate %: $ 3,000,000 20 3.6 4.2 They redeemed a portion of the bonds. Redemption date: Portion redeemed: Market rate on redemption rate %: December 31, 2018 70% 4 Required: 1. Provide the journal entry for the issuance of the bonds 2. Provide the journal entry for the first two interest periods. 3. Provide the detailed calculations for the partial redemption. 4. Provide the journal entry to redeem the bonds Other instructions: Round interest to the nearest month Round amounts to the nearest dollar Record the bonds at net
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