Nash, Inc had outstanding $6,200,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,650,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $124,000) at 102 on August 1.

Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. 

Answer rating: 100% (QA)

Date account and explanation debit credit July 1 Cash 965... View the full answer