On April 1, 2019, Big Sky Corporation issued $400,000 face value, 10 percent bonds at 99.16. The

Question:

On April 1, 2019, Big Sky Corporation issued $400,000 face value, 10 percent bonds at 99.16. The bonds were dated April 1, 2019, and will mature in 10 years. The discount is to be amortized on each interest payment date. The interest is payable semiannually on April 1 and October 1. On October 1, 2022, after paying the semiannual bond interest, the corporation decided to retire the bonds. The bondholders were paid 98.5.

INSTRUCTION
Give the entry in general journal form to record the repurchase and retirement of the bonds. (Use the Gain on Early Retirement of Bonds account.)
Analyze: If the bond had been retired on the original due date, what credit would have been made to the Cash account?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...