On January 1, 2017, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 2016. The bonds have a stated rate of 8% and the market rate at issuance was 10%. The present value of the bonds at issuance was $2,1 15,695. Interest is payable on June 30 and December 31 of every year. Doly amortizes discounts and premiums using the effective-interest method.

Required:

Record all necessary journal entries related to the bond from the date of issuance to the redemption date.

Answer rating: 100% (QA)

To record the necessary journal entries related to the bond from the date of issuance to the redemption date we need to account for the initial issuan... View the full answer