On 1/1/19, Thom Company issued $400,000 of 5-year, 6% bonds. The bonds pay interest semiannually on...

 

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On 1/1/19, Thom Company issued $400,000 of 5-year, 6% bonds. The bonds pay interest semiannually on 7/1 and 1/1. The bonds are callable at 101 any time after 1/1/20. The bonds were issued to yield 5%. Thom decides to call (buy back) the bonds on 3/1/22. Prepare the amortization table and the journal entries for the redemption of the bonds. On 1/1/19, Thom Company issued $400,000 of 5-year, 6% bonds. The bonds pay interest semiannually on 7/1 and 1/1. The bonds are callable at 101 any time after 1/1/20. The bonds were issued to yield 5%. Thom decides to call (buy back) the bonds on 3/1/22. Prepare the amortization table and the journal entries for the redemption of the bonds.

Answer rating: 100% (QA)

To prepare the amortization table and journal entries for the redemption of the bonds issued by Thom Company we need to calculate the bond interest expense interest payments and amortization of the bo... View the full answer