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Transactions: 01/01/2018: Record the issuance of the $400,000, 6%, 5-year bonds payable. 03/31/2018: Record the quarterly interest payment for these bonds. 06/30/2018: Record the quarterly
Transactions: 01/01/2018: Record the issuance of the $400,000, 6%, 5-year bonds payable. 03/31/2018: Record the quarterly interest payment for these bonds. 06/30/2018: Record the quarterly interest payment for these bonds. 09/30/2018: Record the quarterly interest payment for these bonds. 10/01/2018: Jaybird called in half of these bonds at a price 101. 12/31/2018: Record the quarterly interest payment for the remaing bonds. Account: Problem 2: Bond Prob. Effective Background: Jaybird Mining issued $400,000, 6%, 5-year callable bonds payable that pay interest quarterly on March 31, June 30, September 30, and December 31. These bonds were issued on January 1, 2018, when the market rate of interest was 8%. Jaybird uses the effective method to amortize bond discounts and premiums. All entries related to these bonds are included in the Transactions section below
Transactions:
01/01/2018: Record the issuance of the $400,000, 6%, 5-year bonds payable.
03/31/2018: Record the quarterly interest payment for these bonds.
06/30/2018: Record the quarterly interest payment for these bonds.
09/30/2018: Record the quarterly interest payment for these bonds.
10/01/2018: Jaybird called in half of these bonds at a price 101.
12/31/2018: Record the quarterly interest payment for the remaing bonds.
Account:
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