There are three independent situations summarized below. In all three cases the bonds are sold on January

Question:

There are three independent situations summarized below. In all three cases the bonds are sold on January 1, 2018, and the issuing company has a December 31 year-end. In Situation 3, the bonds were all repurchased at par on January 1, 2022.


Required:

Prepare journal entries to record:
a. The issuance of the three bonds.
b. Payment of interest and related amortization on December 31, 2018.
c. Retirement of the Situation 3 bond on January 1, 2022.

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