Question: Please do not copy from Chegg. I need the correct and well-explained answer. Prepare journal entries to record the following transactions relating to long-term bonds
Please do not copy from Chegg. I need the correct and well-explained answer.
Prepare journal entries to record the following transactions relating to long-term bonds of ABC Inc.: a) On June 1st, 2017, ABC, Inc issued $8,000,000, 6% bonds for 7,841,000, which includes accrued interest. Interest is payable semiannual on Feb. 01 and Aug. 01 with the bonds maturing on Feb. 01, 2027. The bonds are callable at 102. b) On Aug. 01, 2017, ABC paid interest on the bonds and recorded amortization. ABC uses straight-line amortization. c) On Feb. 01, 2019, ABC paid interest and recorded amortization on all of the bonds, and purchased $5,000,000 of the bonds at the call price. Assume that a reversing entry was made on January 1, 2019.
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