Question
Retirement of bonds prior to maturity: Alpha, Inc. issued $100,000 of its 7% five-year bonds on January 1, 20x1, at 101. Interest is paid on
Retirement of bonds prior to maturity: Alpha, Inc. issued $100,000 of its 7% five-year bonds on January 1, 20x1, at 101. Interest is paid on January 1 and July 1. The bonds are callable at 105 plus accrued interest and straight line amortization is used. The bonds are recalled on April 1, 20x3.
1.) Prepare the journal entry to record the issuance of the bonds on January 1, 20x1:
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
3rd Edition
0894137409, 978-0894137402
