On 01-01-18, O issued $8,000,000 of its 4%, 6-year callable term bonds dated 01-01-18. The bonds pay interest every July

01 and January 01 and mature on 01-01-24. O can call in the bonds any time after 01-01-21 at 103 plus interest. At the time O issued the bonds, similar bonds paid 4%. Upon issuing the bonds, O incurred and paid $75,000 of bond issuance costs. O uses the effective-interest method to amortize any bond discount or premium. O prepares AJEs only as of every December 31. On 03-01-21, G called in $4,000,000 of the bonds at the call price of 103 plus interest. Prepare the entries O should make on:

1. 01-01-18
2. 12-31-18
3. 03-01-21
4. 07-01-21
5. 12-31-21

Answer rating: 100% (QA)

Solution is given below Date Journal Entries Debit Credit ... View the full answer