Diaz Company issued $100,000 face value, 9% coupon bonds on January 1, 2018, for $92,608 to yield

Question:

Diaz Company issued $100,000 face value, 9% bonds on January 1, 2018, for $92,608 to yield 11%. The bonds mature in 5 years and pay interest annually on December 31. Prepare the entries under U.S. for Diaz for (a) date of issue, (b) first interest payment date, and (c) January 1, 2020, when Diaz calls and extinguishes the bonds at 101.
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...