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The Koff-Dropze Pharmaceutical Corp. has a fiscal year that ends on December 31st The company acquired a bond indenture that authorized $1,500,000 of callable,
The Koff-Dropze Pharmaceutical Corp. has a fiscal year that ends on December 31st The company acquired a bond indenture that authorized $1,500,000 of callable, mortgage bonds, effective April 1, 2023. The bonds were secured by property and equipment with a market value of $2,000,000. The bonds paid interest at a stated rate of eight percent and had an expected term of six years. Interest was due and payable to bondholders each September 30th and March 31st On July 1, 2024, Koff-Dropze issued 1,000 of the bonds and received a cash payment in the total amount of $906,000 (which included interest accrued to date). On October 1, 2026, Koff-Dropze called the bonds and paid the current bondholders any interest accrued to date, plus an additional $1,150,000 in cash. Provide only the following journal entries that the Koff-Dropze Pharmaceutical Corp. made relating to the bonds: The entries made during the period April 1, 2023 through December 31, 2024. The entry that was recorded when the bonds were redeemed on October 1, 2026. Remember that any balance remaining in an unamortized premium or discount account must also have been closed when the bonds were redeemed.
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