On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable on

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On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable on January 1 and July 1 at 10%. On April 1, 2015, Housen Company reacquires and retires 50 of its own $1,000 bonds at 98 plus accrued interest. The fiscal period for Housen Company is the calendar year.

Prepare entries to record (1) the issuance of the bonds, (2) the interest payments and adjustments relating to the debt in 2014, (3) the reacquisition and retirement of bonds in 2015, and (4) the interest payments and adjustments relating to the debt in 2015. Assume the premium or discount is amortized on a straight-line basis.

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Intermediate Accounting

ISBN: 978-1133957911

19th edition

Authors: Earl K. Stice, James D. Stice

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