On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted to $3,000. Bond premium is amortized on straight-line basis. On July 1, 2026, 40% of the bonds were called at 104. Required: Record the retirement of the bonds. Ignore interest and use straight-line amortization.
On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted to $3,000. Bond premium is amortized on straight-line basis. On July 1, 2026, 40% of the bonds were called at 104. Required: Record the retirement of the bonds. Ignore interest and use straight-line amortization.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted to $3,000. Bond premium is amortized on straight-line basis. On July 1, 2026, 40% of the bonds were called at 104.
Required:
Record the retirement of the bonds. Ignore interest and use straight-line amortization. |
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