Question: 2. A firm issues a three-year 8% stated rate bond on January 1, 2016. The principal is $100,000 and the annual effective interest rate is

2. A firm issues a three-year 8% stated rate bond on

2. A firm issues a three-year 8% stated rate bond on January 1, 2016. The principal is $100,000 and the annual effective interest rate is 9%. Coupons are paid annually (on December 31 each year). On January 1, 2018, the bond is repurchased at 98% of par. Show the journal entry for the repurchase

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