Business, 22.02.2020 04:41 kfnldkl1782

On June 30, 2006, County Company issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30,2014. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30,2015, and to issue new bonds. New 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. County Company uses straight-line amortization. Interest payment dates are December 31 and June 30.

a. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2015

b. Prepare the entry required on December 31,2015, to record the payment of the first 6 months' interest and the amortization of premium on the bonds.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 18:00, judali

David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?

Answers: 1

continue

Business, 22.06.2019 18:10, salvadorperez26

Find the zeros of the polynomial 5 x square + 12 x + 7 by factorization method and verify the relation between zeros and coefficient of the polynomials

Answers: 1

continue

Business, 23.06.2019 00:30, aek02

You get your monthly banking statement and notice that the number is lower than expected. you decide that you should create a cash flow statement. why are cash flow statements useful in managing money? what are the steps in creating a statement?

Answers: 1

continue

Business, 23.06.2019 02:20, maustin5323

Which one of the following is not a typical current liability? a. interest payable b. current maturities of long-term debt c. salaries payable d. mortgages payable

Answers: 3

continue

You know the right answer?

On June 30, 2006, County Company issued 12% bonds with a par value of $800,000 due in 20 years. They...