Hawkins sold 10,000 shares of $1,000 par value, 6%, 5-year debenture bonds on 1/1/2017. The bonds will pay interests on 12/31 of each year. The market interest rate was 8% as of 1/1/2017. Hawkins retired these bonds for $9,580,000 on 1/1/2019.

- prepare any necessary journal entries for the followings using the effective interest method.

1. The issuance of the bonds.
2. Interest expense accrued in 2017 and 2018.
3. Retirement of the bonds on 1/1/2019.

Answer rating: 100% (QA)

To prepare the necessary journal entries for the issuance of the bonds interest expense accrued in 2017 and 2018 and retirement of the bonds on 112019 ... View the full answer