Number of bonds issued	500
Par value per bond	$1,800
Stated interest rate	4%
Market/Effective interest rate	6%
Issue date	1/1/X2
Due date (five year bonds)	12/31/X6
Interest is paid semi annually on:	January 1st
AND on	July 1st
Bonds are called on	1/1/X6
Bonds are called at	102%

a. At the date of call the journal entry required to extinguish the debt early has what impact on net income? Input the numeric amount. If it increase net income just input the amount. If it decreases net income use a minus sign such as -100.

b. At the date of call the unamortized bond discount or premium is what?

Answer rating: 100% (QA)

a The journal entry required to extinguish the debt early at the call date will have an impact on net income When bonds are called early any unamortiz... View the full answer