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Solar Wave Company issued bonds on April 1 , 2 0 2 4 . The bonds pay interest on April 1 and October 1 of
Solar Wave Company issued bonds on April The bonds pay interest on April and October of each year. Solar Wave has a December year end and follows IFRS. Solar Wave repurchases and cancels a portion of the bonds on November paying any interest accrued on the retired bonds. Other information pertaining to the bond issue follows:
Par value of the bonds: $
Market rate of interest:
Coupon rate of bonds:
Bond term in years:
Bond repurchase price on November :
Percentage of bonds redeemed on November :
Required:
Prepare an amortization schedule for the first years of the bond issue.
Prepare the journal entry for the issuance of the bonds on April
Prepare the journal entry required on October
Prepare the journal entry required on Solar Wave's year end date of December
Calculate the gain or loss on the partial redemption of the bonds on November
Prepare the journal entries to record the partial redemption of the bonds on November
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