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Sara Co. issued $2,500,000 of 5%,20-year bonds. These bonds were issued on January 1, 2020, and pay interest annually on each January 1 . The
Sara Co. issued $2,500,000 of 5%,20-year bonds. These bonds were issued on January 1, 2020, and pay interest annually on each January 1 . The bonds yield 3% and was issued at $3,243,884. Required: (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2020 . (b) Prepare a bond amortization schedule up to and including January 1, 2024, using the effective-interest method. (c) Assume that on July 1, 2023, Sara Co. redeems 100\% \% of the bonds at $3,500,000 plus accrued interest. Prepare the journal entries to record this redemption
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