On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the
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Question:
On March 1, 2025, after the bond interest payment, TTL had excess cash and went to the open market and redeemed 25% of the bond issue when the market interest rate was 5%.
Required
Record the redemption entry (only); show supporting calculations.
Bond amount = $12,000,000
Coupon rate = 4%
Semi annual payment= on Sept. 1 and Mar. 1
Ready to take to market Sept. 1, 2018
Original yield rate = 3%
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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