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Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest wasa 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. COD Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Accounts Debit Credit Date 2021

Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest wasa 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. COD Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Accounts Debit Credit Date 2021

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest was 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2021
Transcribed Image Text:Maple Management Inc. issued 6 percent bonds with a maturity value of $6,000,000 for $5,513,346 on October 1, 2020, when the market rate of interest was 8 percent. These bonds mature on October 1, 2025, and are callable at 102.50. Maple Management Inc. pays interest each April 1 and October 1. On October 1, 2021, when the bonds' market price is 104.50, Maple Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2021; also record the retirement of the bonds on that date. Maple Management Inc. uses the effective-interest method to amortize the bond discount. Record the entry for the payment of interest and the amortization of the bond discount at October 1, 2021. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Journal Entry Date Accounts Debit Credit 2021
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