8. ABC Company issued callable bonds at par dated January 1, 2021. The call feature provides...

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8. ABC Company issued callable bonds at par dated January 1, 2021. The call feature provides the bondholders with the right to receive $100 for each $1,000 bond. The par value, that is, the maturity value is $3,500,000. The bonds mature at the end of four years and pay 9% semiannually on June 30 and December 31. Interest rates changed dramatically in the marketplace, and ABC Company exercised its option to call the bonds on 1/1/22 when the entire bond issue was retired. Using the attached T-account template (or prepare an “equation" presentation using a spreadsheet format), prepare the entries to recognize the following transactions 1/1/21 Issuance of the bond 6/30/21 The first semi-annual interest payment 12/31/21 The second semi-annual interest payment 1/1/22 Bond retirement ASSETS LIABILITIES EQUITY Non-current Assets Property, Plant & Equipment Intangible Investments Assets/Other Non-Current Liabilities Accumulated OCI Contributed Current Assets Current Liabilities Сapital Earned Capital 8. ABC Company issued callable bonds at par dated January 1, 2021. The call feature provides the bondholders with the right to receive $100 for each $1,000 bond. The par value, that is, the maturity value is $3,500,000. The bonds mature at the end of four years and pay 9% semiannually on June 30 and December 31. Interest rates changed dramatically in the marketplace, and ABC Company exercised its option to call the bonds on 1/1/22 when the entire bond issue was retired. Using the attached T-account template (or prepare an “equation" presentation using a spreadsheet format), prepare the entries to recognize the following transactions 1/1/21 Issuance of the bond 6/30/21 The first semi-annual interest payment 12/31/21 The second semi-annual interest payment 1/1/22 Bond retirement ASSETS LIABILITIES EQUITY Non-current Assets Property, Plant & Equipment Intangible Investments Assets/Other Non-Current Liabilities Accumulated OCI Contributed Current Assets Current Liabilities Сapital Earned Capital

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