On December 31, 2019, PT ABC issued $500,000 of 6% contractual rate, 5-year bonds at 98, with interest paid annually on December 31. Assuming straight-line amortization. a. Prepare amortization table for the first 2 years. b. Journalize the issuance of bonds payable. c. Journalize the interest payment for Year1 on December 31, 2020. d. Journalize the redemption of bonds payable at 101.5 on December 31, 2021 (after interest payment for Year-2)

On December 31, 2019, PT ABC issued $500,000 of 6% contractual rate, 5-year bonds at 98, with interest paid annually on December 31. Assuming straight-line amortization. a. Prepare amortization table for the first 2 years. b. Journalize the issuance of bonds payable. c. Journalize the interest payment for Year1 on December 31, 2020. d. Journalize the redemption of bonds payable at 101.5 on December 31, 2021 (after interest payment for Year-2)

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 8RE

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