On 1/1/2015, XYZ issued a 10 year, 10% 1,000 bonds. The Face value of each bond...

 

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On 1/1/2015, XYZ issued a 10 year, 10% 1,000 bonds. The Face value of each bond is $500 The bonds pay interest on December 31st of each year. On 1/1/2015, the market rate of interest was 12%. On 1/1/2019, XYZ retired the bonds. Assuming that XYZ incurred no loss or gain on the retirement of the debt transaction. Also, assume that XYZ uses the effective interest rate method to amortize premium/discount. Prepare the journal entry on 1/1/2019 (date of retirement) Show work. PMT FV= 5 On 1/1/2015, XYZ issued a 10 year, 10% 1,000 bonds. The Face value of each bond is $500 The bonds pay interest on December 31st of each year. On 1/1/2015, the market rate of interest was 12%. On 1/1/2019, XYZ retired the bonds. Assuming that XYZ incurred no loss or gain on the retirement of the debt transaction. Also, assume that XYZ uses the effective interest rate method to amortize premium/discount. Prepare the journal entry on 1/1/2019 (date of retirement) Show work. PMT FV= 5

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To prepare the journal entry for the retirement of the bonds on January 1 2019 we need to consider t... View the full answer