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. 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 of 101. 12/31/2018 Record the quarterly interest payment for the remaining bonds.
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.
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 of 101.
12/31/2018
Record the quarterly interest payment for the remaining bonds.
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