The Long-Term Debt section of Rodman Company's balance sheet as of December 31, 2012, included 8% bonds

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The Long-Term Debt section of Rodman Company's balance sheet as of December 31, 2012, included 8% bonds payable of $600,000 less unamortized discount of $44,000. Further examination revealed that these bonds were issued to yield 11%. The amortization of the bond discount was recorded using the effective-interest method. Interest was paid on January 1 and July 1 of each year. On July 1, 2013, Rodman retired the bonds at 104 before maturity.

Prepare the journal entries to record the July 1, 2013, payment of interest, including the amortization of the discount since December 31, 2012, and the early retirement on the books of Rodman Company.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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