Question: a. Palmer Corp. issued callable bonds with a face value of $200,000 and a coupon rate of 6%. The bond matures in 4 years and

a. Palmer Corp. issued callable bonds with a face value of $200,000 and a coupon rate of 6%. The bond matures in 4 years and pays interest semi-annually. The market rate at time of issuance is 7%. Provide the journal entry to record the issuance of the bonds on January 1^st, 2020.

b. Record the journal entry for the interest expense on 6/30/2021?

c. What is the net book value of the bonds payable at 12/31/2022?

d. Palmer Corp. decides to exercise the right to retire its bonds early on 12/31/2022. It calls its bond at a call premium of 3 percent over par. Record the retirement of the bonds.

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