question long term liabilities prepare journal entries for the following transaction 4293951
Long-term Liabilities: Prepare journal entries for the following transactions of Re-Do-It Corp.
3/1/15 Bonds payable with a face value of $900,000, which are dated 1/1/15, are issued at 93 plus accrued interest. They bear interest at 9% (payable semiannually at July 1 and January 1). They mature on 1/1/21.
7/1/15 Interest on the above bonds is paid, and amortization of discount is recorded. Straightline amortization is used.
12/1/15 Bonds of a face value of $180,000 (which were issued above on 3/1/15) are purchased at 95 plus accrued interest, and retired. Make all entries necessary to record the retirement. Update amortization on the retired bonds only at this time.
12/31/15 Interest on the remaining bonds is accrued, and amortization of discount is recorded.