Zeta Corporation issued $800,000 of 10% quartile bonds for 4years on January 31, 2019 which was dated 01/01/20219, with accrued interest. The bonds were sold to yield 8% effective annual interest. Zeta Corporation closes its books annually on December 31.

Required:

1- Journalize the bonds issued?  

2-   Compute the schedule of premium or discount amortization for 2 years?                 

3- Journalize all interest entries during 2019?

4-Assuming in April 1, 2020, the company retired 25%of its bonds and paid $220000, journalize the entry of retirement?

5- Journalize the interest in31/12/2020?

Answer rating: 100% (QA)

Issue price Annual Interest x PVIFA8 4 Par value x PVIF8 4 800000 x 10 x 33121 800000 x 07350 852968 ... View the full answer