Hawkins sold 10,000 shares of $1,000 par value, 6%, 5-year debenture bonds on 1/1/2017. The bonds will
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Question:
Hawkins sold 10,000 shares of $1,000 par value, 6%, 5-year debenture bonds on 1/1/2017. The bonds will pay interests on 12/31 of each year. The market interest rate was 8% as of 1/1/2017. Hawkins retired these bonds for $9,580,000 on 1/1/2019.
- prepare any necessary journal entries for the followings using the effective interest method.
- The issuance of the bonds.
- Interest expense accrued in 2017 and 2018.
- Retirement of the bonds on 1/1/2019.
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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